Chapter 7 Bankruptcy

Get Clear Guidance for Chapter 7 Bankruptcy

Chapter 7 bankruptcy is also called “liquidation.” A bankruptcy trustee is appointed in the case to determine whether you have any non-exempt assets to be liquidated (sold for cash, either to you or to a third party) with which the trustee pays part of your debts. In many cases, there are no non-exempt assets. In most other cases, you will be able to pay the trustee the value of your non-exempt assets and keep your property.

Chapter 7 bankruptcy cases typically take about four months to complete, if there are no assets. Barring objection, the discharge is entered roughly 120 days after the case is filed. The discharge order prevents creditors from ever collecting on unsecured debts like credit card debt, medical bills, most personal loans, car loan deficiencies, payday loans, and even some income tax debt if it is old enough. Other debts are still collectible after the bankruptcy – primarily, child or spousal support, most student loans, recent income taxes, and some other specific kinds of debt. One of the things we’ll talk about when you meet with me is what kind of debt you have, and how much relief you will get with your bankruptcy discharge order.

You can get detailed information about Chapter 7 from the Judicial Conference of the United States on the US Courts website here. Keep in mind that whether Chapter 7 is a good choice for you depends on your financial circumstances.

Call Law Office of Sharon T Sperling to schedule a FREE initial consultation so I can help you make an informed decision.