Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as simple bankruptcy or liquidation plans. In a Chapter 7 case, Rome bankruptcy lawyers show you’re unable to pay the debts you have based on your income and expenses. In a Chapter 7 case, your debt is completely discharged. When the case is over your debt no longer exists. It’s gone.
What Chapter 7 bankruptcy does:
- Liquidates - or sells - any non-exempt property you may have to pay creditors
- Eliminates most unsecured debt like credit card bills and medical expenses
- Provides Automatic Stay protection to you against lawsuits, collection actions, foreclosure, and reposession
- Give you a fresh financial start.
Chapter 7 bankruptcy seems simple in theory. However, with the changes in bankruptcy laws, you are now required to qualify for Chapter 7. Anyone filing Chapter 7 must take and pass a Means Test which determines if your income falls within set standards. Nor is all debt discharged through Chapter 7 bankruptcy. Debts arising from student loans, child or spousal support, taxes, drunk driving convictions or other intentional acts are considered Priority Claims and are not discharged.
Secured debts - debts tied to collateral like a house or car - are not discharged in Chapter 7 bankruptcy. If the property is non-exempt, it may be sold to pay creditors at least some of what is owed. You may have the opportunity to reaffirm - or agree to new terms of the loan - the debt and remain current on the payments.
If you believe you qualify for Chapter 7 bankruptcy, consult a qualified Rome bankruptcy lawyer. Your attorney will work with you through the Means Test and help you determine what property you can keep.
If you’re ready for a Fresh Start, fill our free evaluation form today.
