Chapter 7 Bankruptcy
Chapter 7 is sometimes called “straight bankruptcy”. With a Chapter 7 bankruptcy, you receive an elimination of all debts but are allowed to keep your possessions and property. If you owe too much on these types of debts, Chapter 7 bankruptcy is likely a good option for you and the Bankruptcy Law Center is committed to helping you through this process.
Discharge of Debts
Chapter 7 bankruptcy allows a person to receive a discharge of debts. Discharge means that a person will no longer owe any of the debts that are discharged. Discharge can beneficial if you can no longer afford to pay your bills. Some of the debts that are most often discharged include credit card debt, lawsuits, medical bills, mortgages, personal loans, and underwater liens.
Exemptions
One common myth about Chapter 7 bankruptcy is that people will lose all of their property if they file for Chapter 7 bankruptcy. In reality, there are exemptions that protect many types of property that belong to a person. Applicable bankruptcy law allows individuals to keep their exempt belonging and property.
Automatic Stays
Automatic stays prevent anyone from taking action against a person who has filed a bankruptcy. Creditors are also prohibited by federal law from collecting discharged debts. Due to these laws, creditors are unable to call a person, send letters, garnish wages, repossess vehicles, file a lawsuit, or foreclose on their home. Given the many benefits of Chapter 7 bankruptcy, it is often a wise idea for individuals who interested in the process to immediately contact a skilled lawyer.
Qualifying for Chapter 7 Bankruptcy
A large number of individuals who interested in applying for Chapter 7 bankruptcy qualify to do so. One of the largest obstacles that deter individuals from filing for Chapter 7 bankruptcy is that they believe it is difficult to become eligible for Chapter 7 bankruptcy. Statistics reveal that in the last 5 years, over 4.7 million individuals have filed for Chapter 7 bankruptcy. Qualifying for Chapter 7 bankruptcy depends on a variety of factors but is largely determined based on a person’s income in relation to the state’s median income and the person’s ability to pay off their debts in a reasonable amount of time.
Benefits of Chapter 7 Bankruptcy
There are some particular advantages to filing for Chapter 7 bankruptcy, which includes the following:
- Avoid future garnishments and lawsuits related to your debts.
- Eliminate various kinds of debts.
- Keep your property and belongings.
- Stop creditor harassment in any form.
- Reinstate your driver’s license.
Contact a Seasoned Bankruptcy Attorney
It is important to obtain the assistance of a skilled bankruptcy attorney to help you navigate through the bankruptcy process. The attorneys at the Bankruptcy Law Center can help you during each part of the process. Do not hesitate to contact our law firm at 800-718-9688 to obtain the assistance that you need in making sure that your case resolve in a positive manner. Our legal counsel has helped numerous clients discharge their debts and gain financial stability through Chapter 7 Bankruptcy.