HOW THIS HAPPENS

When income goes down or mortgage payments go up creditor payments can fall behind.  Then debt collectors will contact you.  They may seem unconcerned that you lost a job or have been sick.  You can’t afford their repayment demands.  They want you to get current now.  If you are unable to catch up, things get worse.

Chapter 7 stops;

• Collector Harassment
• Lawsuits
• Wage Garnishments
• Frozen Checking Accounts

It provides an opportunity for a fresh start from your debt problems.
Chapter 7 eliminates;

• Credit cards debt
• Medical bills
• Repossession and foreclosure debt
• Debt from broken leases
• Insurance debt form auto accident

In Chapter 7 you are asking the bankruptcy court to give you relief from your creditors. Collection efforts against you stop the day you file – no more phone calls, lawsuits or garnishments.  This protection is called an automatic stay.

When you file the court appoints a trustee to examine the bankruptcy estate, which consists of all of your exempt and non-exempt property.  Exemption laws limit the value of assets you can keep.

Filing Chapter 7 does not automatically cause you to lose your house or car.  This is determined by several factors including fair market value, loan payoff amounts, exemption amounts and more.  Please fill out our Bankruptcy Inquiry and talk to an experienced bankruptcy attorney about your house and car.

Not all debts can be eliminated in Chapter 7.  Common non-dischargeable debts are;

• Taxes
• Student loans
• Child support arrears
• Traffic tickets

Chapter 7 Timeline

Case File Date            Trustee Hearing                           Discharge Date
            [-------1-2 months-----][--------------2-3 months ----------]

The law change of 2005 made bankruptcy more difficult.  There are more rules then ever before.  Talk to an attorney by filling out our Bankruptcy Inquiry.

Fill out the bankruptcy evaluation form.