Chapter 7 Consumer Bankruptcy

“Liquidation”

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Chapter 7

Chapter 7 allows you to discharge your unsecured debts such as medical bills, credit cards, and repossession deficiencies.  It is available for both individuals and small businesses.  If you file Chapter 7, a Trustee is assigned to administer your case.  The Trustee will meet with you and your attorney in a brief meeting approximately 4 to 6 weeks after you file.  Your creditors are also invited to attend the meeting, but it is rare that one attends.  During this meeting, the Trustee has a right to demand the turnover of your non-exempt assets.  Most consumers have little to nothing that must be given to the Trustee.  To see if you have any non-exempt assets, please call us for a FREE CONSULTATION.  We will help you protect your assets.

 

Keeping Your Assets

As long as you remain current on your house and vehicle payments, you will not lose them.  It is very important to properly prepare and submit your paperwork to the Court including a list of assets, a budget, a statement of your finances over the past few years and your intentions regarding your secured debts.  We can help you to avoid any costly mistakes that could cause you to lose your property.

 

Debts that Survive Bankruptcy

There are some types of debts that are not discharged in a bankruptcy.  Student loans are not normally dischargeable in a bankruptcy unless you suffer from a severe hardship.  Child Support or Maintenance is not dischargeable.  Some IRS debt is dischargeable, while other IRS debt is not.  If you owe the IRS any money and want to find out if it is dischargeable in a bankruptcy, please call us for a free consultation.  If you want to keep your house and vehicles, you must also continue with these payments.  As well, debts resulting from fraudulent or malicious acts will survive Chapter 7, but may be dischargeable in a Chapter 13.

 

Lawsuits & Judgments

If a creditor has filed a lawsuit or even received a judgment against you for a credit card, medical bill or repossession, you can still normally discharge these debts through a bankruptcy.

 

Stop Creditor Harassment

Once your creditors receive notice that you filed Chapter 7, they must stop contacting you immediately.  They can no longer make those harassing phone calls, write threatening letters, sue you or try to seize your property.  If they do continue any collection activity against you, you have the right to sue them in federal court for monetary damages.

 

 

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