Chapter 7 Bankruptcy


Chapter 7 is the most common type of bankruptcy filed.  Chapter 7 wipes out debt, including medical bills, credit card balances, and some kinds of personal loans.  Certain types of debt known as non-dischargeable debt, such as alimony, child support, and tax debt, cannot be wiped out through Chapter 7.

Individuals, businesses (both sole proprietorships and partnerships), and corporations can file.  Individuals may file with or without their spouse.  Non-U.S. citizens are also eligible to file. 

If you are carrying a heavy debt load with little chance of paying it off, a Chapter 7 may be right for you.  When you come to Adam Schneider for your free consultation, he will determine if this is the best solution for your financial situation.

Will you lose everything by filing for Chapter 7 bankruptcy?  No.  Many of your assets are exempt, such as your home, car, IRA, vehicles or equipment used for work, and many household items.  You need to talk to an experienced bankruptcy attorney to determine what can be exempted.

How will your life change after filing for Chapter 7 bankruptcy?  First off, the phone calls and letters from creditors and bill collectors will stop as soon as you file for bankruptcy.  That alone is a huge relief.  Your wages can no longer be garnished.  Your debt is discharged.  You will be required to go for credit counseling, which will teach you strategies for smart spending and saving.  

It's time for a fresh start.  Call Adam Schneider today to take that first step.

Chapter 7 is the most common type of bankruptcy filed.  If you are carrying a heavy debt load with little chance of paying it off, a Chapter 7 may be right for you.
Chapter 7 wipes out unsecured debt.  This includes medical bills, credit card balances, and some kinds of personal loans.  Certain types of debt, known as non-dischargeable debt, can not be wiped out, such as alimony, child support, and tax debt.
Individuals, businesses (both sole proprietorships and partnerships), and corporations can file.  Individuals may file with or without their spouse.  Non-U.S. citizens are also eligible to file.
When you come to Adam Schneider for your free consultation, he will discuss with you the details of your financial situation.  He will use a formula called a means test to find out whether you are eligible for Chapter 7 or Chapter 13, or if bankruptcy is the best solution to your unique case.  You will be given a worksheet package that will detail all the information needed to file your bankruptcy.  You will need to provide documentation of all income, assets, personal property, and debt.
Will you lose everything by filing for Chapter 7 bankruptcy?  No.  Many of your assets are typically exempt, such as your home, one or more cars, vehicles or equipment used for work, and many household items.  The court will liquidate some of your assets to pay off your creditors, but you need to talk to an experienced bankruptcy attorney to determine what can be exempted.
How will your life change after filing for Chapter 7 bankruptcy?  First off, the phone calls and letters from creditors and bill collectors will stop as soon as you file for bankruptcy.  That alone is a huge relief.  Your wages can no longer be garnished, and some back account levies will end.  You will be required to go for credit counseling, which will teach you strategies for smart spending and saving.  You can no longer use your credit cards, but after your situation stabilizes, you can apply for a card with a low limit.  By making the required payments on time, you will begin to repair your credit rating.