CHAPTER 7 BANKRUPTCY

 

Chapter 7 bankruptcy, also referred to as “liquidation”, strives to completely eliminate all of your legal liability to pay unsecured debt. Unsecured debt includes debt from credit cards, medical bills, and unsecured personal loans. Although this should take care of a large amount of your debt, Chapter 7 bankruptcy does not discharge secured debts, such as student loans, child and spousal support, taxes, criminal fines, and parking tickets. Nonetheless, Chapter 7 bankruptcies are advantageous because they eliminate the stresses of unsecured debts, while allowing homeowners to maintain most of their property and assets. Additionally, the filing of a Chapter 7 bankruptcy petition will halt foreclosure proceedings, wage garnishment, creditor harassment, and other causes of stress for distressed homeowners.

In addition to getting rid of your debt, Chapter 7 allows you to typically keep all of your property. As long as your car and mortgage payments are current, and there is no significant equity in your property, we should have no problem making the arrangements for you to reaffirm the debt. Under a Chapter 7, our goal is for you to keep your home, keep your car, keep your personal belongings, but eliminate your debt.

To determine whether a Chapter 7 bankruptcy is right for you, please contact the Stone Haven Law Group today.