We understand that unexpected events like an accident, illness, or injury, can leave you deep in debt. While bankruptcy might seem overwhelming, it can be the right solution to help you get out of debt. When you work with us, we clearly explain all of your options so you can make an informed decision and choose the right option for you.

If you’re suffocating in debt, relief is possible. Learn more about Chapter 7, and when you’re ready to move forward, call us. Relief is only a phone call away.

Chapter 7 Bankruptcy: What You Need to Know

As a liquidation bankruptcy, Chapter 7 can free you of many types of unsecured debts. Some key aspects you need to know about Chapter 7 include:

  • When you file for bankruptcy, the court will place a temporary stay on your current debts. This means that creditors cannot harass you for payments, garnish your wages, repossess your property, or take other actions. Instead, the court will take possession of your property and assign a trustee to your case.
  • A trustee will sell the nonexempt property you can’t keep under bankruptcy. The money from these sales will go to repay your creditors.
  • At the end of your bankruptcy case, the court will discharge your remaining debts – at least those that can be dismissed. Some debts cannot be discharged, including child support, taxes, alimony, and student loans.

How Chapter 7 Impacts Your Credit Rating

If you are careful with your finances after having your debts discharged under Chapter 7, your credit might not suffer as much as you think. You may even be able to start re-establishing a positive credit rating right away. Talk to our experienced bankruptcy attorneys.

How Chapter 7 Affects Your Home

If you fall behind on your mortgage, filing Chapter 7 bankruptcy does not allow you to catch up on your payments – meaning you will most likely lose your home.

While your mortgage debt can be discharged, the lender will still have a lien against the property. If you stop making your payments, the lender can foreclose on your house. Let our experienced attorneys help you determine the best approach if you fall behind on your mortgage.

The Highs And Lows Of Chapter 7 Bankruptcy

As with any financial plan, there are pros and cons to Chapter 7 bankruptcy. Some things you should be aware of include:

  • There is no repayment plan.
  • Most debts will be discharged, meaning your slate will be wiped clean.
  • It will not stop foreclosure.
  • It does not prevent repossession.
  • Your property may be subject to liens.
  • Most property you own is exempt under bankruptcy law.
  • You may lose some of your property.

How to File Chapter 7 Bankruptcy

When you’re ready to file Chapter 7 bankruptcy, you need an experienced bankruptcy attorney to help you through the process. Some steps you will need to take include:

  • Attend credit counseling from a court-approved credit counseling agency.
  • File bankruptcy forms. On these forms, you will need to list your property, exemptions, creditors, income, recent transactions, and other financial information.
  • Send financial documents to your court-appointed trustee. This can include bank statements, credit card statements, tax returns, paychecks, and others.
  • Attend a creditor meeting to discuss your bankruptcy petition.
  • After the creditor meeting, you will then need to attend another session of credit counseling. You will need to prove to the court that you completed the class.
  • After attending the class, you can then wait for the court to issue a discharge notice of your debts.

It’s important to not navigate this process on your own. You need an experienced bankruptcy attorney to help you through the process, file the right paperwork, submit the correct documents, and more. Trying to represent yourself can hurt you financially long-term, and can risk not having all of your eligible debts discharged.

Call Us For Debt Relief

To learn more about filing Chapter 7 bankruptcy, it’s crucial to hire an experienced attorney to help you through the process. Don’t let debt ruin your life. Call (405) 784-7212 for a free case review.

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