For those who qualify, Chapter 7 provides a Fresh Start to individuals. Chapter 7 wipes away most debts, including credit cards, payday loans, repossession deficiency balances, most judgments, some tax obligations, and personal loans. Most debtors retain or keep most of their assets and personal possessions after filing chapter 7. State and Federal law dictate what individuals are entitled to keep. Our Attorneys will advise you what property you get to keep and what property, if any, is at risk. Typically, debtors keep their homes, cars, clothes, furniture, wedding rings, 401(k), IRA, and personal possessions.
You may have heard rumors that Bankruptcy laws changed in 2005, which now makes it more difficult to file for Bankruptcy. While the Bankruptcy laws did change, most individuals are still able to qualify and file for Chapter 7 Bankruptcy. The new law introduced the “means test”, which is based on IRS standards and median incomes. Our Attorneys understand the means test and the requirements to qualify for Chapter 7.
We help people get rid of their debt and start new lives, without the crippling burden of debt. In addition, we help people get out of houses they can no longer afford or houses that are worth less than what is owed on the mortgage. Let us help you make a rationale decision and instruct you how to leave your home. With our Tax Attorneys, we will also let you know of the tax consequences of losing a home.
After Bankruptcy, many creditors will be willing to extend credit to you. It is important that you use this credit carefully to reestablish your credit history and raise your credit score. Plus, the relief that comes from Bankruptcy is more important than your credit score. In some cases, credit will actually improve after the Bankruptcy because your debts are no longer on your credit.
Chapter 7 Bankruptcy