Chapter 7 bankruptcy is the form of bankruptcy most people think about when they think about bankruptcy. If you are eligible to file Chapter 7 bankruptcy based on your income level and other factors, Chapter 7 bankruptcy can eliminate your unsecured debts, such as credit cards, personal loans, and medical bills.
Chapter 7 bankruptcy will not allow you to catch up mortgage payments, car payments, child support, or pay income taxes. No payments to creditors are made in a Chapter 7 bankruptcy like they are in a Chapter 13 bankruptcy.
Filing Chapter 7 bankruptcy can stop creditor action against you as soon as the bankruptcy is filed and provide significant debt relief. However, it is imperative that the bankruptcy is filed correctly - if it is not, your property and the discharge of your unsecured debts can be affected.Am I Eligible to File for Chapter 7 Bankruptcy?
Your eligibility to file Chapter 7 bankruptcy depends on a number of factors, including:
- How much money you make
- What kinds of debts you have
- The type and value of property you own
- Whether you have filed bankruptcy in the past
- Your financial and debt relief goals
Very specific calculations, including a large calculation called the means test, have to be done to determine whether you can file Chapter 7 bankruptcy.Can I Keep my Property if I File Chapter 7 Bankruptcy?
When you file Chapter 7 bankruptcy, you can only keep a certain amount of property. The amount of property you can keep depends on the type of property it is and the value of the property. Generally, most people can keep the home they live in, their car, their personal property such as clothing and furniture, and most retirement accounts. If you own property you cannot keep in a Chapter 7 bankruptcy, the Chapter 7 trustee can take that property, sell it, and pay the proceeds of the sale to your creditors. Attorney Lauren Powell can advise you on your property and which property of yours will be protected if you decide to file Chapter 7 bankruptcy.Hire a Board Certified Bankruptcy Lawyer for the Help You Need
Powell Law Offices, P.C., understands the intricacies of bankruptcy and can answer any questions you have. Lauren Powell works one on one with clients, which means you will have direct access to your lawyer at all times instead of having to go through a secretary or paralegal. We are proud of our client commitment and will keep you informed and confident. We also offer a free bankruptcy case evaluation for each client, so schedule your consultation right away. The sooner you hire a lawyer, the sooner you can find relief from your overwhelming debts. Contact us today!