Chapter 7 Bankruptcy

Chapter 7 is the most common form of consumer bankruptcy.

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What Is Chapter 7 Bankruptcy?

Bankruptcy is a legal status where a debtor cannot repay debts to creditors; Chapter 7, known as a “straight bankruptcy” is the simplest and quickest form available to individuals. For qualified consumers, Chapter 7 will resolve overwhelming, unsecured types of debt from a number of sources such as credit cards, payday loans, medical bills, and personal loans. What it doesn’t do is clear debt from sources like student loans, back taxes, court judgments, alimony, and child support.

To qualify for Chapter 7, you must pass a means test which looks at your income, assets, and expenses. Timing is important too, as it must be at least 8 years since your last Chapter 7 filing or 6 years from your last Chapter 13 bankruptcy. Also, you cannot have a record of filing for bankruptcy in the previous 180 days, specifically one that was dismissed because you failed to appear in court or comply with court orders.

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What Will Happen?

Once your bankruptcy attorney files a petition, the court issues an automatic stay on all collection attempts. This stops most creditors from suing you, garnishing your wages, or even contacting you for payment.

The court appoints a trustee who determines if you qualify for Chapter 7, contacts your creditors on your behalf, and determines whether your assets that aren’t exempt are worth selling so that the proceeds can go to your creditors. They will also arrange for a meeting of creditors where the trustee will ask the debtor a series of questions about their financial affairs and that everything that was filed was true and correct. Your creditors may come to the meeting to interview you as well. Three to six months after you file, your case will be discharged, meaning your eligible debts are forgiven, and your case is closed.

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Is Chapter 7 Right For You?

There are certain situations where Chapter 7 bankruptcy makes sense. Although some debts cannot be erased (such as student loans or certain taxes), bankruptcy can still be a viable option.

  • You have substantial amounts of dischargeable debt such as medical bills, credit card debt, and payday loans.
  • You don’t have many assets.
  • You are unexpectedly unemployed, have seriously overextended credit, or other large unexpected expenses.
  • It would take a number of years to pay off your debts.
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How Toscano & Wilson Can Help You

Why continue to worry? Click below to tell us a little about your issue and our legal team will reach out to you. We are experienced and professional Chapter 7 bankruptcy lawyers and our services are confidential and fast. Click here if you have any further questions about the bankruptcy process. Bankruptcy may not be easy, but with Toscano & Wilson, the road to financial recovery will be.

Contact Us

The legal experts at Toscano & Wilson understand what you are going through. Bankruptcy may seem like the end, but the truth is it is simply a new beginning. Through competent and compassionate legal representation with Toscano & Wilson, things can only get better. Give us a call, tell us your story, and start to feel better about your financial situation.

  • The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, messages, and emails. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until an attorney-client relationship has been established.

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