Filing for Chapter 7 Bankruptcy

If you have reached the point where you do not think you will be able to pay off your credit card debt, mortgage or medical bills, it is time to explore your options. Chapter 7 bankruptcy and debt consolidation may be right for you. It is time to take action and get the debt relief you deserve.

Put an End to Your Financial Concerns

Are you tired of struggling with your mounting debt? Are you looking for a fresh start? By filing for Chapter 7 bankruptcy, you can quit looking over your shoulder, worrying about potential lawsuits. You can stop foreclosure and creditor harassment and get the financial relief you have been looking for. This is what you can expect from Chapter 7 bankruptcy:

  • It will end liability for all discharged debt.
  • You may not have to surrender your house and car. Many people do not think they can keep their home or car after Chapter 7 bankruptcy, but you may have more options than you realize.
  • Depending on your situation with the IRS, you may be able to wipe out some tax debt if it is more than three years old.

Chapter 7 of the Bankruptcy Code governs liquidation bankruptcy, available to both individuals and businesses. Upon the filing of a Chapter 7 petition, the bankruptcy court issues an “automatic stay” that stops most collection proceedings against the debtor, including but not limited to foreclosure proceedings. A bankruptcy trustee is appointed to your case and is responsible for reviewing the information we file in your bankruptcy papers. In these cases, some creditors’ debts remain unsatisfied and ultimately discharged in most instances, except for those debts that are non-dischargeable, such as alimony and child support.

New Chapter 7 Bankruptcy Laws

Due to a recent change in federal law, many people believe it is harder to file for Chapter 7 bankruptcy. While under the new laws you must meet the requirements of an income test, most people who could file for Chapter 7 bankruptcy under the old law can still file under the new law.

The Process of Filing a Chapter 7 Bankruptcy

The Chapter 7 bankruptcy is commenced by filing a petition, schedules, and statement of financial affairs. You will also need to attend one meeting at the Bankruptcy Court, called a 341 Meeting of Creditors. This proceeding is relatively straightforward and usually lasts 5-15 minutes. We will be there to represent you during the proceeding. You will have 2-4 weeks advance notice of the hearing in order to make the necessary arrangements to attend. Typically, there is nothing left for you to do after attending the 341 Meeting of Creditors.

If done correctly, you can complete the process and receive your discharge in as little as four to six months from the time of filing. The discharge is a Court Order stating you are no longer legally obligated to pay certain debts. When considering bankruptcy, we will make sure you understand all your options. You may be better off exploring a Chapter 13 bankruptcy. We will make sure you make the choice that is right for you.


Most Common Bankruptcy Myths

Filing for bankruptcy will ruin my credit for 10 years

It is true that a bankruptcy will appear on your credit report for 10 years, but many people are able to restore and rebuild their credit within just a few years after filing for bankruptcy. What normally ruins people’s credit is not the fact that they filed for bankruptcy, but that they did not pay their bills or debts on time. After you have filed for bankruptcy, most of your current debts will be discharged, which means you will have a chance for a clean start. If you pay all of your new bills after bankruptcy on time, and do not fall behind on any payments, you will see your credit score improve, despite the fact that you have a bankruptcy on your credit report.

I will lose my house and car

Bankruptcy is designed to help people who are struggling with too much debt by alleviating their financial burden. Bankruptcy was not designed to punish people who do not pay their debts by selling their homes or cars. However, if at the time of filing your bankruptcy you are essay writer
not current with your monthly payments on either your home and/or car(s), a Chapter 13 bankruptcy would be recommended in most cases, particularly if your intention is to keep the property. The type of bankruptcy which would best suit your particular situation is an issue that will be discussed by you and your bankruptcy attorney during the consultation.

I cannot get new credit after filing for bankruptcy

Many people are surprised to find that they actually have an easier time obtaining credit after filing for bankruptcy. The reason for this is because prior to filing for bankruptcy, there was a bunch of unpaid debt listed on your credit report. After filing for bankruptcy, the majority of that debt has been completely erased forever. In the eyes of the credit company, you are like a clean slate with no debt. This makes you a more desirable candidate for credit. In fact, it usually takes less than one year or so after a bankruptcy discharge to acquire new credit. Of course, often times credit offers you receive after having filed bankruptcy continue higher interest rates and/or other fees and so it is recommended that you carefully review all terms and conditions prior to accepting credit offers.

I will never be able to purchase a car or home again after bankruptcy

Most of our clients have been able to purchase a home or car after filing for bankruptcy. It generally takes two or three years after bankruptcy before you can purchase a house and even less time to purchase a car. However, no attorney can (and should not) guarantee the time frame within which you will be able to reestablish your credit and the effects of a bankruptcy on your credit is something that you should discuss with your bankruptcy attorney during your consultation.

My spouse will be held liable for my debt

This is not always the case, as it will depend on your specific financial situation. The only way to tell for sure if your spouse will be liable for your debt is to consult an experienced bankruptcy lawyer. When you come to our office, we will review both your case and your essay writers financial situation, and help you determine how a bankruptcy filing would affect both you and your spouse.

Filing for bankruptcy makes me a bad person

Absolutely Not! Thousands of good, decent, responsible people file for bankruptcy every year. This is particularly true in light of the current economic crisis which has had an impact on a large majority of Americans. All it takes is one unexpected incident to throw an otherwise financially secure and responsible person into debt. Family emergencies, unexpected job losses, sudden illnesses, a death in the family, etc can all result in debt. Furthermore, it is much more admirable to take responsibility for your debt through bankruptcy than simply ignoring your creditors and continuing to avoid making payments towards your debt.

My employer can fire me because I filed for bankruptcy

It is not only illegal, but it is also unethical for your employer to fire you because you filed for bankruptcy. If you can prove that your employer fired you solely because of your bankruptcy, then you may have a potential lawsuit against him or her for wrongful termination.

I can go to jail if I do not pay my debts

You will not be sent to jail for failing to make payments toward your debt, even if you get sued or a judgment is obtained against you. However, if you have failed to make child support payments or payments to the IRS you may have problems, especially if your debt to the IRS stems from the fact that you committed tax fraud or tax evasion.

Keep in mind that the above is provided for general information only and responses vary depending on your particular issues. This information should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.