A Chapter 7 Bankruptcy cancels all “dischargeable” debt. Chapter 7 Bankruptcy discharges:
Credit Card Debt
Personal Loan Debt
Judgments - unless fraudulent or criminal in nature
Deficiency Debts (i.e. repossessed vehicles and foreclosed property)
Personal injury debt - except where injury was the result of driving while intoxicated
Certain exceptions may apply
Generally, a person may keep their home or vehicle, provided the payments are current and the person has the ability to continue to make the future payments.
A Chapter 7 Bankruptcy discharge does not eliminate student loans, except where undue hardship can be proven. A Bankruptcy discharge does not eliminate other debts including: certain taxes; alimony and/or support payments; fines, penalties, and criminal restitution; debts incurred by intentional injury to a person or property; or debts from personal injury caused while driving under the influence.
The Chapter 7 Bankruptcy Process
Chapter 7 Bankruptcy can eliminate most, if not all, of your unsecured debt. The process is relatively quick and may provide relief from the stress of debt within 4 months between filing and receiving a discharge. Best of all, there will be no payments to creditors. By working with an experienced attorney, all forms and bankruptcy schedules will be prepared for you. Afterwards, we will review the paperwork with you before it is filed. Additionally, Chapter 7 Bankruptcy protects against wage garnishment, collection calls, repossessions, foreclosures, and lawsuits.
Filing for Chapter 7 Bankruptcy
The first step in filing for Bankruptcy is to contact our office to determine if filing for Chapter 7 is right for you. The attorney will determine your eligibility by conducting a means test. This test examines your income, expenses, assets, debts, and exemptions as required by the Bankruptcy Code. The law requires that anyone considering filing for Chapter 7 Bankruptcy receive credit counseling and take a Debtor Education Course. There is no “grading” or pass/fail for these courses. They may be done online, by phone, or in person and rarely take more than an hour or two. The attorney will assist you in obtaining the mandatory credit counseling and Debtor Education Course.
Contact us today to speak to a qualified professional at the Reissman Law Group P.A., and start the road to financial freedom right now.