Chapter 7 Bankruptcy

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy, allows people in debt to get a fresh start by having their debts discharged. Most debts are dischargeable.

These types of debts include:

  • Unpaid Credit Card Bills

  • Unpaid medical Bills

  • Unpaid Utility bills

However, there are certain types of debts that cannot be discharged, even through bankruptcy.

  chapter 7

These types of debts include:

  • Child support and alimony payments

  • Most student loans

  • Tax debt

  • Court-ordered fines or penalties

  • Restitution to personal injury victims or crime victims

The purpose of a Chapter 7 Bankruptcy is to allow a person to obtain a fresh start, free from creditors, and free from the pressures of overwhelming debt. Under this Chapter, you may be able to keep your home, vehicle, qualified retirement plans, and other assets.

After filing for relief under Chapter 7 Bankruptcy, you may receive a discharge. A discharge permanently prohibits creditors from attempting to collect those debts listed in your bankruptcy petition.

If you receive a discharge under Chapter 7 Bankruptcy, you may not receive a discharge under this Chapter for the next 8 years. If you have filed a chapter 7 within the last 8 years, you may still, however, qualify to file for Bankruptcy relief under Chapter 13. (Read More About Chapter 13 Bankruptcy)

Timeline for Chapter 7 Bankruptcy:

A Chapter 7 Bankruptcy takes about four to six months to run from start (when you hire us) to finish ("discharge"). It normally takes only two appointments to have your case ready for filing. Immediately after you file, creditors must cease to harass you. They are not allowed to call or write you without the Court's permission. You are required to attend one hearing about a month after your bankruptcy petition has been filed with the court. The purpose of the hearing is for you to verify, in person, that all the information you provided in your bankruptcy petition was accurate and complete. The hearing is conducted by a bankruptcy trustee who is appointed by the court to review your file. The main job of the trustee is to make sure that you don't have any non-exempt assets which could be sold and used to pay your debts.

Contact our firm today for your free Union County bankruptcy evaluation.

Richard L. Brown
309 Lancaster Avenue
Monroe, NC 28112 - 4800
Phone: (704) 283-6800
Fax: (704) 291-7725