Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most common form of filing. Often referred to as “liquidation” or a “fresh start” bankruptcy, a debtor is allowed to keep possessions up to a certain dollar value called “exemptions.” Anything above the allowed value can be taken and sold by the Trustee to pay down your debts. In most cases, you are able to keep or “exempt” all of the property you own.

Once you complete the process, many of your debts will be discharged. These include debts such as:

  • Medical Bills
  • Credit Card Debts
  • Eviction debts
  • Repossession debts
  • Most Lawsuits
  • Garnishments
  • Most business debts

Non-dischargeable debts include:

  • Past due child support
  • Past due spousal support
  • Student Loans
  • Criminal fines
  • Most taxes
  • Injuries cause by DUI

If you own a house or car, you must continue to pay these loans if you desire to keep the property. However, if you can no longer afford them, or simply no longer want them, you can give the property back to the lender. If there is still a remaining balance or penalties, it will be included in your discharge and the lender cannot come after you.

If you are considering filing chapter 7 bankruptcy, please contact our office for a free 30 minute initial consultation.