Imagine the chance at a fresh financial start that will not only halt the stress of your bad debt but also help you work your way back to good credit. Chapter 7 bankruptcy is an excellent way to put a stop to creditors threatening wage garnishments, lawsuits, and further collection activities on the debts that you owe, plus it gives you that new financial start. Your debts can be eliminated in this type of bankruptcy in as little as four months.
What will happen to your assets, though? What if you do not have any assets?
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is also called “liquidation” or “straight” bankruptcy because, although all of your debts will be wiped out with the bankruptcy, any assets that you have (excluding exempt assets) will be liquidated to pay off your creditors. Your case will be assigned a court-appointed individual called a “trustee.” The trustee’s duty is to sell your valuable, unexempt property and distribute the proceeds to your creditors. In exchange for doing this, the trustee earns a commission.
In exchange for the payment from your assets, creditors forgive your debts. The elimination of your debts in bankruptcy is called “discharge.” After your debts are discharged, creditors are barred from collecting on them - forever.
But, What If I Do Not Have Any Valuable Assets?
If you do not have any valuable assets, then your case is considered to be a no-asset Chapter 7 bankruptcy. You might have a no-asset Chapter 7 bankruptcy even if you do have valuable assets because you are allowed property exemptions.
Chapter 7 bankruptcy property exemptions (property you can typically keep) include:
Vehicles (up to a certain value)
Clothing that is deemed reasonably necessary
Household goods and furnishings deemed reasonably necessary
Jewelry (up to a certain value)
A portion of the equity in your home
A portion of earned but unpaid wages
Tools pertaining to debtor’s profession or trade (up to a certain value)
Public benefits (public assistance, unemployment compensation, and social security payments) that have accumulated in your bank account
Personal injury damages
Are You Considering Filing For Bankruptcy? If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.
Are You Considering Filing For Bankruptcy?
If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.