Chapter 7 Bankruptcy Services
Chapter 7 bankruptcy is called liquidation or wipe out. The basic idea is to wipe out your unsecured debts, like credit cards, medical bills, personal loans, judgments, etc., and get a fresh start. Chapter 7 bankruptcy also stops garnishments from your paycheck.
CHAPTER 7 USUALLY ALLOWS YOU TO KEEP YOUR HOME AND/OR YOUR CAR
Most people are worried about keeping their house and/or car when filing Chapter 7. Chapter 7 allows you to keep your house if you continue to maintain your payments and if you can exempt the equity you have in that property. It also allows you to keep your car if you maintain the payments, have a reasonable payment and can protect the equity you have in it.
Each person who files a bankruptcy case gets different types of exemptions or dollar amounts to protect different types of property. In order to keep your property, the equity or value of the property must fall within these amounts. When you come to Macomb Bankruptcy Attorney, Daniela Dimovski, she will ask you a series of questions and evaluate your situation to make sure you can keep your property.
CHAPTER 7 ALSO ALLOWS YOU TO GIVE BACK YOUR HOME OR YOUR CAR
If you choose to do this, Chapter 7 will wipe out balances you may owe upon turning this property back to the bank or lender.
CHAPTER 7 DOESN’T WIPE OUT ALL DEBTS
It’s important to understand that Chapter 7 does not typically eliminate all debts. Court-ordered alimony payments, maintenance, or support payments are typically not subject to discharge in chapter 7. Chapter 7 typically does not wipe out student loans and certain tax debt. Creditors can also challenge debts incurred through fraudulent conduct. Chapter 7 will also not clear debts incurred through intentional injury to a person or property, or from personal injuries caused by driving while intoxicated.
CHAPTER 7 ELIMINATES
• Credit Card debts
• Medical debts
• Personal loan debts
• Lawsuit debts
• Judgments – Unless fraud or criminal related
• Deficiency debts on repossessed autos and foreclosures
• Personal Injury Debts – except driving while intoxicated and criminal injury
• Certain other exceptions may apply
You WILL NOT qualify for Chapter 7 if
• You filed Chapter 7 in the last 8 years.
• Have a number of assets or property with a high amount of equity.
• Have a high income without many expenses.
Learn more about the Chapter 7 Timeline