Chapter 7 Bankruptcy
When your level of debt has become unmanageable, Chapter 7 bankruptcy gives you a “fresh start” and a chance to start over. Chapter 7 is the most commonly used type of bankruptcy, and it will typically eliminate the following debts:
- Credit cards and unsecured loans
- Medical bills
- Some tax debts
- Repossession charges
Chapter 7 will also immediately stop collection harassment, wage garnishment and bank account seizures. Once your case is filed, your creditors must stop any action to collect a debt from you.
How I Can Help You
I have filed Chapter 7 bankruptcy cases for thousands of clients. I know that most bankruptcy cases result from financial changes that may have been behind your control . My goal is to answer your questions, accurately file your Chapter 7 case, and keep you fully informed from filing to discharge.
I Will Help You Determine If Chapter 7 Is Your Best Option
Although most clients find the Chapter 7 is best for them, it may not be suitable if:
- You have a high income. The “means test” of the Bankruptcy Code bay disqualify you.
- You have substantial nonessential or luxury assets
- You wish to stop a foreclosure on your home. A Chapter 13 case would be a better choice.
- The debts your have would not be eliminated in a Chapter 7 case (this would include back child support payments, most recent tax debts, court fines and student loans).
My job as your attorney is to determine if Chapter 7 will be your best bankruptcy option.
How Chapter 7 Affects Your Home and Vehicles
Clients understandably want to know if they will lose any property if they file a Chapter 7 case. Although most filing by far are “no asset” cases and nothing needs to be paid or surrendered to the bankruptcy trustee, it is possible that in exchange for eliminating your debts you may have to give up “nonexempt” property. Fortunately, Minnesota has very generous exemptions that will protect your home, your vehicles and (in most cases) everything else you own.