Chapter 7

CHAPTER SEVEN

Chapter 7 bankruptcy is designed to relieve you of debts.  The most common debt that is discharged in chapter 7  are credit cards, money judgments, payday loans, lawsuits, personal loans and most other ordinary debts.  The chapter 7 case when filed with the Bankruptcy Court immediately provides you with an automatic stay.  The automatic stay is designed to stop creditors from taking action against you and against your property.  The automatic stay stops foreclosures, trustee’s sales, repossessions, wage garnishments, bank levies lawsuits and other creditor actions.  Chapter 7 bankruptcy is the most common chapter filed in the Bankruptcy Court.

CONSULT A BANKRUPTCY ATTORNEY

Consult a certified bankruptcy specialist to discuss which type of bankruptcy is right for you.  An experienced bankruptcy specialist can discuss with you the specific circumstances for your case  and if a chapter 7 case is right for you.  In chapter 7,  a chapter 7 trustee is appointed to determine whether non-exempt personal and real property is available in your case to sell and to pay your creditors.  In chapter 7,   you are allowed to protect your assets with a list of exemptions provided by law to limit or prevent the sale of assets.  Consult a bankruptcy attorney to discuss proper exemption planning to protect your assets in chapter 7.  Seek consultation and advice from a certified bankruptcy specialist to discuss the different types of bankruptcy (chapters 7, 11, and 13) and which one is right for you.

FRESH START

Chapter 7 bankruptcy is designed to provide you with a Fresh Start.  The discharge in bankruptcy is the legal excuse from paying your debts.  The discharge is available to the honest person to get relief from oppressive creditors.  The exceptions to a discharge in bankruptcy include domestic support obligations, taxes and student loans to name a few.  Seek consultation and advice from a certified bankruptcy specialist to discuss the exceptions to debts that are not subject to a discharged by the bankruptcy code.