Chapter 7 Bankruptcy


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Chapter 7 Bankruptcy

In this tough economy bankruptcy is increasingly becoming a viable option for many individuals, families and businesses. The goal of a bankruptcy filing varies from one debtor to another, and depends on whether a chapter 7, 11 or 13 bankruptcy is being filed. We understand our client’s needs and seek to provide quality service at an affordable price for our clients to file bankruptcy and get out of debt.

We want to make your Bankruptcy process seem simple and easy, you can rely on us to get the job done quickly. We are here to answer all your questions and make sure you understand the bankruptcy process. Most importantly, we want to teach you  how to build back your credit. We won’t take a single penny from you unless we are certain that you can file bankruptcy and discharge all of your debt in a chapter 7 bankruptcy.

For some individuals, bankruptcy may be a difficult choice.  If you are struggling and wonder whether you should file for bankruptcy, ask yourself the following questions:

  • Are your credit card accounts more than 30 days late?
  • Do you only make the minimum payment?
  • Do you have multiple mortgages on your house?
  • Have you maxed out the credit limit on one or more of your credit cards?
  • Have you borrowed money to pay off your credit cards?
  • Do you live paycheck to paycheck?
  • Have you borrowed money from family, friends, and neighbors to meet obligations?
  • Are you behind on your mortgage or car payments?
  • Is your house in foreclosure?

If you have answered yes to more than one of these questions then you may want to consult with us regarding filing for bankruptcy. Individuals can file for bankruptcy protection under Chapter 7, Chapter 11, and Chapter 13 of the Federal Bankruptcy Code. Below is a brief description of the chapter 7 bankruptcy process.

Bankruptcy: Chapter 7

In a Chapter 7 bankruptcy, all of your dischargeable debts are eliminated. This includes credit card debts and personal loans. Secured creditors, such as your mortgage and car loans, must continue to be paid if you plan to keep the property. You have to option of surrendering even secured properties if you choose you don’t want to keep them.

Bankruptcy establishes a legal status wherein an individual or business is no longer able to pay off its debts. Once a person files for bankruptcy that person(s) is protected from creditors making harassing phone calls and collecting on monies owed. Law suits are also “stayed” by filing for bankruptcy, thus, creditors in pending litigation against you cannot proceed and most likely once the debt is discharge the pending litigation will be dismissed.

When you hear the word bankruptcy many people think of a Chapter 7 bankruptcy is. A Chapter 7, or straight bankruptcy, can provide families and individuals with debt relief in approximately 3 months. We make sure the process is not stressful and simplify each step for you to be comfortable with the peace of mind that everything will go smoothly.

Many people assume that by filing bankruptcy they will lose everything they own. These uncertainties are often exaggerated. In fact, many people don’t realize that in a chapter 7 bankruptcy you could keep any debt you want by a simple reaffirmation agreement. That means you can keep your house, your car or even a credit card at your discretion so long as the property is exempt from bankruptcy.

Qualifications for Bankruptcy

In the U.S., bankruptcy laws are laid out in Title 11 of the United States Code, known to most of us as the Bankruptcy Code. In October of 2005 the bankruptcy laws were reformed and were designed to make the system safer and more efficient for both debtors and creditors. The revised Code now governs all bankruptcy filings and proceedings in the country, both for consumers and businesses. Petitioners for Chapter 7 bankruptcy are now must qualify for bankruptcy before filing. The qualification is done through a means test, we won’t bore you with the details of what the means test require but if you call us now and we can provide you with a FREE means test qualification consultation to make sure you qualify for a chapter 7 bankruptcy.

Credit Counseling

Another provision of the 2005 reform laid out a requirement that all individuals filing for bankruptcy must obtain credit counseling prior to filing for bankruptcy. Also, you are required to attend money management classes before final discharge of your debts is allowed. Both of these sessions can be done online or by telephone. Each class costs roughly $25 to $35.