Chapter 7 Bankruptcy Provides A Fresh Financial Start

Do any of the following statements describe you:

  • I can barely make the minimum payments on my credit cards.
  • I have amassed so much credit card debt that I cannot pay my mortgage.
  • I am actually using some credit cards to pay other credit cards.
  • I may lose my house to foreclosure
  • I have enormous medical bills that I cannot pay.
  • My creditors have sent my accounts to collection agencies who now call me day and night.
  • I lost my job and have no income.
  • My wages are being garnished.

A Chapter 7 Bankruptcy filing will stop all of the above, and give you the opportunity to decide how to handle your secured debts. The majority of our Chapter 7 Bankruptcy clients keep everything and lose nothing.

Understanding What Chapter 7 Accomplishes

Chapter 7 Bankruptcy is often referred to as the "fresh start." The debtor is absolved of liability for both secured and unsecured debts. The debtor will be able to hold on to any number of assets through this process by claiming exemptions under the Federal Chapter 7 Bankruptcy Code. For example, a car or a house on which the debtor is currently making payments, provided that any equity in property can be covered by an exemption.

Where a debtor is current on payments on a car or a house, and there is no equity, these again are assets that the debtor will be able to keep. In a situation where the debtor is not current on these assets, the relief from other unsecured debt provided by Chapter 7 Bankruptcy may provide the debtor the financial freedom to get current on these assets.

Chapter 7 Bankruptcy is generally used in situations where a person has become unemployed or lost a substantial amount of his or her income. The lifestyle of the debtor is no longer one he can afford. Provided the debtor can pass the means test, these debts will be eliminated.

Help Navigating Chapter 7

When a Chapter 7 Bankruptcy case is completed, the debtor emerges virtually debt free. The creditors will be notified by the trustee that the debt has been discharged.

It is also possible through a Chapter 7 Bankruptcy to follow the case with a Chapter 13. This will be a situation where a low-income debtor has come into money or a new job. Once the unsecured debt is discharged and the debtor is again in a position to generate income, a plan can be proposed to the trustee to get current on assets such as a house or a car.

Contact McMillan Law Group today to arrange a free initial consultation. Simply call 619-880-4371 or send an email.

We are a debt relief agency that advises clients according to the federal Bankruptcy Code.