Practice Areas‎ > ‎Bankruptcy‎ > ‎

Chapter 7

At times, there
comes a point where it makes more sense to start over. 

Chapter 7 Bankruptcy, sometimes referred to as 'straight bankruptcy' or 'liquidation bankruptcy' is the version of bankruptcy most commonly thought of.  With a Chapter 7 bankruptcy, you, the debtor, can wipe out most or all of your unsecured debt--that is, debt that hasn't been tied to some sort of collateral.

Typical unsecured debt can include:
  • Medical Bills
  • Credit Card Bills
  • Collection Agency Accounts
  • Civil Court Judgments (unless based on fraud)
  • Deficiency Balances (from Repossession or Foreclosure)
  • Personal Loans
  • Utility Bills
  • Business Debts

Chapter 7 Bankruptcy can offer immediate relief!  Upon filing your bankruptcy case, a court order referred to as the "Automatic Stay" will go into effect, which automatically prohibits creditors from calling, writing, texting, emailing, or contacting you in any way.  Creditors are prohibited from pursuing collection actions against you during the pendency of your bankruptcy case.  Wage garnishments will be lifted, and attempts to execute against your bank account will cease.  Creditors who violate the automatic stay will be forced to disgorge any moneys collected in violation of the order, and will be subjected to serious penalties if it can be shown that they willfully violated the protection of the automatic stay.

So what's the catch? 

Chapter 7 isn't necessarily the best solution for everybody.  If you have significant assets that you would like to try to hold onto, it might make more sense to take a look at Chapter 13, or consult with us on a strategy to avoid bankruptcy altogether.  There are certain types of debts which typically cannot be discharged in bankruptcy, such as student loans or child support obligations.  Other factors that might affect whether Chapter 7 is the right choice for you include your income, any transfers of property made in the past few years, and the nature of your debts.  Call us to set up a free consultation, and we'll talk about it!