Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most common form of bankruptcy filing, accounting for the majority of all consumer filings.  It is a liquidation of assets, but don’t let the description scare you. In many cases, your state’s exemption laws protect your assets and allow you to keep everything that you own, including your house and car. This is why complete disclosure of your assets and liabilities are required to assure that your attorney has properly advised you as to the possibility of liquidation.

Chapter 7 will eliminate most unsecured debts, such as credit cards, medical bills, deficiencies for repossessed autos, subscriptions, memberships, utilities, etc.  As a general rule, student loans, IRS debt, maintenance and child support obligations, parking tickets, fines and penalties, and debts acquired by fraud are not dischargeable.

Secured debts such as auto loans and mortgages cannot be eliminated if you intend to keep those items. Consequently, your payments must be current and remain current.  Other debts secured by furniture, jewelry, household items, etc. may be negotiated in order for you to retain. Or you may opt to surrender the property in order to eliminate the debt altogether. 

When a bankruptcy is filed on your behalf, there is one hearing that you must attend called a 341 Meeting of Creditors.  At that time, your documents will be reviewed and you will be questioned under oath by an interim trustee with the U.S. Trustee’s Office.  Approximately three months following the hearing, if no objections to discharge have been filed, you will receive your discharge.  This generally marks the completion of your bankruptcy.

Cost:  The filing fee for Chapter 7 is $299. The attorney fee varies from case to case, but starts at $595.00 with as little as $200 down!

Complete our Free Evaluation today to find out if you’re eligible!