Chapter 7 Bankruptcy
What is Chapter 7 Bankruptcy?
In a Chapter 7 bankruptcy petition, you are seeking to obtain a discharge of outstanding unsecured debt. The discharge is a court order which releases you from ever having to pay all your unsecured debt back. It is classified by the Chapter 7 bankruptcy law as “dischargeable.” Again, this means any debt that is “discharged” in Chapter 7 bankruptcy court will NEVER have to be paid back. The discharge also serves as a permanent injunction against potential collection action for debt incurred prior to the Chatper 7 bankruptcy discharge. In other words, all collection activity on the debt that was discharged in a Chapter 7 bankruptcy will STOP FOREVER!
A Chapter 7 bankruptcy discharge eliminates your unsecured debt, and allows a you to proceed forward without financial turmoil. Chapter 7 Bankruptcy laws provide our clients with an opportunity for a fresh financial start. There are many pros and cons of Chapter 7 Bankruptcy, and the Chapter 7 bankruptcy rules are always changing. It is very important to hire an expert who can handle this delicate situation for you.
DO YOU QUALIFY FOR A CHAPTER 7 BANKRUPTCY?
Most debts are dischargeable, such as
- Credit Card Accounts
- Personal Loans
- Medical Bills
Debt categorized by the bankruptcy law as “non-dischargeable” includes:
- Certain types of tax debt
- Most student loans
- Government fines
- Restitution for outstanding child and spousal support
- Debts incurred from criminal or fraudulent conduct
A Chapter 7 bankruptcy filing technically results in the liquidation of a debtor’s assets designated as“nonexempt” by the bankruptcy law. Upon the filing of a Chapter 7 petition, a United States Bankruptcy Court Trustee is assigned to evaluate and sell a debtor’s nonexempt assets. The proceeds of any such sale are used to pay off creditors.
A Chapter 7 bankruptcy debtor is able to retain all property categorized as “exempt.” This means you can KEEP the “exempt” property. Examples of property classified as exempt by the bankruptcy law includes:
- U.S. Savings bonds
- Tax refunds up to $2,500
- Household furniture
- All wearing apparel
- Certain appliances and household goods
- Equity in a motor vehicle up to $4,200. ($8,400.00 For spouses filing jointly
- Equity in a house, condo, or co-op up to $150,000.00 ($300,000.00 for spouses filing jointly)
- Most pensions and retirement plans
As a result of the recent changes to the bankruptcy laws and bankruptcy requirements, it is important to utilize the services of an experienced bankruptcy attorney to carefully evaluate an individuals income and expenses. Our bankruptcy attorneys will be able to tell you if you pass the Chapter 7 bankruptcy means test. We have some of the top bankruptcy lawyers on Long Island that can guide you through the complicated bankruptcy process. Get a FRESH financial start TODAY!
Please contact the bankruptcy attorneys of Coughlin Rainboth Murphy and Lown CALL 603-431-1993 or CLICK HERE TO REQUEST A FREE BANKRUPTCY CONSULTATION and we will arrange for a free and CONFIDENTIAL consultation. We will help you determine where you stand financially, and if Chapter 7 Bankruptcy is right for you. It is up to you take the first step to a new financial life, and give us a call or fill out the debt questionnaire.