Frequently Asked Questions about Chapter 7 Bankruptcy
What is Chapter 7 Bankruptcy? +
Chapter 7 bankruptcy is filed when a Debtor cannot afford to make a meaningful payback to Creditors. Most unsecured debts are discharged (wiped out). Secured debts, such as cars, houses, and furniture, can continued to be paid directly by the Debtor if he desires to keep the collateral. However, the Debtor’s property is not protected, meaning
Creditor’s can repossess or foreclose on the property if they so desire. Furthermore, if there is significant equity in any Assets, then the Court can potentially sell the Asset and pay creditors with the profit.
What Property can I keep? +
There are many Bankruptcy exemptions and they differ from state to state. Only once we have a complete list of all your Assets can we give you a clear answer.
Who can file a Chapter 7 Bankruptcy? +
You must not have been granted a Chapter 7 discharge within the last 8 years or completed a Chapter 13 plan within the last six years with a repayment of less than 70% to unsecured creditors.