What is Chapter 7 Bankruptcy?

What is Chapter 7 Bankruptcy?

Commonly referred to as “straight Bankruptcy,” in this kind of Bankruptcy the debtor does not set up a plan to pay creditors. The debts are simply eliminated (with some exceptions), and if the debtor owns anything that is not protected, it will be sold for the benefit of the creditors. In most consumer cases, everything is protected and the debtor does not lose any property.

What Kind of Debts can Chapter 7 Eliminate?

- Credit Card Debt
- Medical Bills
- Unsecured Loans
- Lines of Credit
- Foreclosure Deficiencies
- Repossession Deficiencies
- Most Judgments
- Some Taxes

How Long Does a Chapter 7 Take?

Approximately 4 weeks after our office files your petition, you will attend a short meeting called a “341 Meeting” or a “Meeting of Creditors.” At this meeting you will be asked a few simple questions about your financial situation. Approximately 2 months after that meeting, the court should issue a Discharge Order that will eliminate your dischargeable debts.