Chapter 7 Bankruptcy
Chapter 7
Chapter 7 bankruptcy is “liquidation bankruptcy.” You can eliminate most kinds of unsecured consumer debt, including credit card debt, medical bills, unsecured personal loans not backed by collateral such as personal lines of credit, and most old taxes. The majority of bankruptcy cases filed are this type.
Chapter 7 relief is often used by those who have fallen behind on payments to unsecured creditors or are only making the minimum payments to their creditors. If you own a home and are being sued, it may be in your best interest to file to avoid a judgment lien.
As is the case in a Chapter 13 bankruptcy, some debts cannot be discharged in a Chapter 7, including, but not limited to, child support, alimony, and most student loans.
When your case is filed, a trustee is appointed to take over your property. You will be able to keep your personal items and real estate depending on the law of the State where you live and applicable federal laws.
You can receive a discharge from a from a Chapter 7 case filed once every eight years.
Call attorney Teresa C. Edwards for a free consultation at 202-486-1258.