Chapter 7 Bankruptcy

This is the most common type of bankruptcy. Under a Chapter 7 Bankruptcy you can get rid of (i.e. discharge) most of your debts. However, although you can discharge credit card bills and medical bills, you usually cannot discharge child support, alimony, most taxes and student loans. Also if you have a "secured debt" (i.e. a promise to pay that is secured by a piece of property) if you get rid of the debt you must give the property back. In other words if you owe money on your home you can get rid of the debt (i.e. the obligation to pay your mortgage) but you cannot keep the house. This also applies to motor vehicles.

However not everyone is eligible to file for a Chapter 7 Bankruptcy. When you contact our office we will schedule an appointment for you to meet with me to discuss your situation in detail. At that meeting we will discuss what is the best course of action for you to take. Should you file a Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, try to negotiate with your creditors, try to modify your loan or simply do nothing? We will also determine if you are eligible to file for a Chapter 7 Bankruptcy. You can ask all the questions you want. There is no fee for this meeting.

If you are eligible to file for a Chapter 7 Bankruptcy ,and you decide to do so, I will give you a list of documents we need. When you have gathered those documents I will review them and prepare the paperwork. We will then meet to review and sign the paperwork. At the same time you will take an on-line course called the Pre-Bankruptcy Counseling Course. I will assist you in taking this course.

After this course is completed I will file the paperwork. A hearing ( called the "Creditor's Meeting") will be held 45 days after I file. For example if I file the paperwork on June 1, 2009 the Creditor's Meeting will be held on July 15, 2009.

You and I will go to the Creditor's Meeting together. This is in a room where there are other people who have also filed for bankruptcy. You will be questioned by the Trustee which normally takes about ten (10) minutes.

After the Creditor's Meeting you will need to take a "Financial Management Course" (which you can take on-line). This must be completed within 45 days after the Creditor's Meeting. The purpose of the course is to teach you how to manage your finances.

Sixty (60) days after the Creditor's Meeting you will receive an ORDER OF DISCHARGE discharging all of your debts forever. Thereafter you should never be bothered about those debts again and can begin to re-build your life. The entire process ,from beginning to end, takes approximately four (4) months.

Please understand that there are many additional rules and requirements that I have not discussed in this article. Your situation may be more complex. Therefore you should hire an attorney to handle this matter for you.

Let me use my over twenty-five years of experience to help you.