Chapter 7 Bankruptcy

A Chapter 7 is the classic bankruptcy that comes to mind when people think of bankruptcy. In a Chapter 7, you must report what assets you own to the court when you file. There are protection rules, called “exemptions,” that determine what you are allowed to keep and what may be taken by the court in order to be sold (i.e., liquidated) to satisfy the claims of your creditors. A Trustee is appointed to determine what, if any, assets you have that may be available to liquidate and to distribute the proceeds to creditors. It is important that you call Mike for a free consultation prior to selling or giving away any assets in contemplation of bankruptcy. There are look-back periods that empower the Trustee to go after the value of the asset even if you do not own it when you file. Before you make any decisions, call Mike for a free consultation, and take some comfort in the fact that the rules are not designed to take everything you own. On the contrary, Chapter 7 is a necessary component of our economy that allows people to get out from under burdensome debt obligations, give them a “fresh start” and allow them to be productive members of their communities.

One of the immediate benefits of filing for bankruptcy is the “automatic stay.” The automatic stay begins on the day Mike files your paperwork with the Bankruptcy Court. The automatic stay prohibits any creditor’s attempt to continue to collect from you or your property. This can be a powerful tool, used by people crippled by garnishments. Once you file for bankruptcy, the garnishment stops for good. In fact, often times, Mike can get some of that money that was garnished from paychecks back into his client’s pocket. The automatic say also prohibits collection calls and letters. Unlike the large bankruptcy firms that can take weeks or months to file your paperwork with the court, Mike can help you get your paperwork filed within days (hours if necessary) of getting the necessary documents. The automatic stay ends 90 days after the bankruptcy is filed and the court issues an order for discharge, relieving the debtor of any future obligations to pay dischargeable, pre-petition debts. Some debts are not discharged (i.e., wiped-out) by bankruptcy, student loans for example. Call Mike for a free consultation to determine if Chapter 7 can be a solution for you.