The quickest way to become debt free.
Understanding Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is often referred to as a "complete-wipe-out". This is because Chapter 7 allows you to eliminate "discharge" most, if not all, of your debts.
Chapter 7 is Effective in eliminATING
CREDIT CARD DEBT
LIABILITY FROM REPOSSESSED CARS OR FORECLOSED HOMES
HARASSING PHONE CALLS
DEBTS AFTER A DIVORCE
LIABILITY FROM CO-SIGNED DEBTS
SOCIAL SECURITY OVER-PAYMENTS
Chapter 7 Bankruptcy is considered one of the most convenient and quickest forms of debt relief available. Because of the powerful effect of Chapter 7, the law requires that you pass a "means test" to qualify for this bankruptcy. Qualification is based upon an examination of your income and expenses. Our law firm will examine your income and expenses to determine whether you will qualify for Chapter 7.
secured vs. unsecured debt
Secured debt is debt secured by property (home loans, car loans, some furniture loans). Most people who file Chapter 7 decide to keep their secured debts. Generally, you will need to be current on your payments. On the other hand some people do decide they would rather give up an overly expensive car or home they can no longer afford. Chapter 7 allows you to return property to the creditor and wipe out the remaining debt without facing the collections ramifications that happen outside of bankruptcy.
Unsecured debt is debt not linked to any property (credit cards, medical bills, personal and payday loans, etc.). Most, if not all, unsecured debts are wiped out in Chapter 7
Bankruptcy Law and State Law provide certain "exemptions" that protect your property. Understanding exemption laws and determining which exemptions can be applied to your particular case are a critical part of the bankruptcy process. It is extremely important to have an experienced bankruptcy attorney by your side to protect your property. Our firm has successfully defeated challenges to exemptions and saved valuable property for our clients.
Most of our Chapter 7 cases are No Asset cases--meaning our clients do not lose any of their property.
Generally, upon the filing of your Chapter 7 case, all collection actions must immediately stop. This includes lawsuits and garnishments.
During the case, an "automatic stay" is put in place that prevents creditors from attempting to contact you and collect debts from you.
The Chapter 7 process from filing to discharge is about 4 months.