CHAPTER 7 BANKRUPTCY

Chapter 7 bankruptcy is part of a larger set of laws known collectively as Title 11, or the Bankruptcy Code. It provides a safety net for those struggling to pay credit cards, medical bills, and personal loans. It is meant to provide a “Fresh Start” for qualified debtors by wiping the slate clean through discharge. A judicial discharge relieves the debtor from financial overwhelm and provides an opportunity to begin anew. For most Chapter 7 filers, the initial goal is to stop debt collector phone calls and the ultimate goal is to regain peace of mind. Chapter 7 is designed to assist individuals and businesses, towards a fresh start while providing the result of debt elimination.

Under Chapter 7, a debtor may retain some personal property assets by claiming exemption and surrender non – exempt assets to a trustee for liquidation. Claimed exemptions can include some equity in your home and car; Social Security payments; and important business tools, among others. The proceeds generated from the sale of non-exempt assets is distributed to your unsecured creditors. When it's your time to step out of debt overload and begin again, give our office a call. We are here to help guide you through the process.




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