Chapter 7 Bankruptcy

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The Fresh Start Bankruptcy

Chapter 7 bankruptcy is often called the “fresh start” bankruptcy, referring to the fact that an individuals unsecured debt is completely wiped out or discharged. Far too many people believe that bankruptcy is a black mark or an admission of failure. This is far from the truth. The fact is, with the tough economy over the last few years, many people have had to seek debt relief in the form of filing bankruptcy. It can give you the relief you need and a financial fresh start.

Which Debts Are Discharged?

Chapter 7 Bankruptcy can help you find financial relief through the discharge of unsecured debt. Creditors are paid through assets deemed unnecessary to live and work and debtors can often keep their house and car as long as they continue to make the payments. Secured debts such as mortgages and car loans can also be eliminated through Chapter 7 bankruptcy if you are willing to surrender the collateral securing the loan. However, debtor’s must continue making payments if they intend to keep them.

Unsecured debt typically includes:

  • credit card debt
  • medical bills
  • personal loans
  • past due utility bills
  • collection bills

The filing also acts as an automatic stay of all collection activities. Once a bankruptcy case is filed, all activities must cease, including creditor calls, collection notices, and garnishments.

Chapter 7 Bankruptcy Qualifications

Depending on whether or not you are below the median income for your household size, or if your income and expenses otherwise qualify you, Chapter 7 could be the best way for you to put your debt behind you and regain control of your finances. If you do not pass the means test, or if your situation warrants it, Chapter 13 may be the right form of bankruptcy for you.

Erase Debt. Start Now.

If you are considering filing for bankruptcy, you are not alone, and you deserve to find financial relief. To learn more about your bankruptcy options, contact us today for a free initial consultation with a bankruptcy attorney.

Set up a consultation with one of our experienced bankruptcy attorneys today. Contact Bellah Perez, PLLC at 602-252-9937.