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BANKRUPTCY DOES NOT HAVE TO BE OVERLY EXPENSIVE OR TIME CONSUMING. IT JUST NEEDS TO BE DONE CORRECTLY THE FIRST TIME.
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(559) 385-2586

Chapter 7

A Chapter 7 bankruptcy is often the best choice for individuals who are experiencing an extended financial hardship.  If you do not have the ability to repay a portion of your debts, a Chapter 7 bankruptcy can help you eliminate your debts.

Trapped in Credit Card Hell?

A Chapter 7 Bankruptcy cancels all “dischargeable” debt.

Chapter 7 Bankruptcy discharges:  Credit Card Debt,  Medical Debt,  Personal Loan Debt,  Judgments-Unless fraudulent or criminal in nature,  Deficiency Debts (Repossessed vehicles and foreclosed property),  Personal injury debt-Except where injury was the result of driving while intoxicated,  Certain Exceptions may apply.  

Generally, a person may keep their home or vehicle, provided the payments are current and the person has the ability to continue to make the future payments.

A Chapter 7 Bankruptcy discharge does not eliminate student loans, except where undue hardship can be proven.  A Bankruptcy discharge does not eliminate other debts including: certain taxes; alimony and/or support payments; fines, penalties, and criminal restitution; debts incurred by intentional injury to a person or property; or debts from personal injury caused while driving under the influence.

Chapter 7 is a liquidating Chapter under the Bankruptcy Code with debtors generally receiving their discharge in approximately 4 months.  In Chapter 7 cases, a trustee is appointed to examine the debtor and inquire about their assets to see if there are any non-exempt equity in assets that can be liquidated to pay creditors.  Chapter 7 is the most common type of bankruptcy filed.  Approximately 95% of all Chapter 7 cases filed end up as “no asset” cases.  This means there are no assets other than exempt assets.  Exemptions are determined on a state-by-state basis.