Chapter 7 bankruptcy is the most common form of filing. Sometimes known as “liquidation” or a “fresh start” bankruptcy, a debtor is allowed to retain possessions up to a certain dollar value called “exemptions” as typically dependent upon Washington State. Anything above the exemption value can be taken and sold by the US Bankruptcy Trustee to settle your debts. In most cases, you are able to keep or “exempt” all of the property you own.

Once you complete the Chapter 7 Bankruptcy 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 Chapter 7 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 vehicle, you must continue to pay these loans if you desire to keep the property. However, if you can't 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 attempt to collect.

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

Chapter 7 Bankruptcy Lawyers Near Lynnwood, Washington 98026