Chapter 7 Bankruptcy
Often referred to as “straight bankruptcy,” Chapter 7 bankruptcy is a process, organized under federal law, that provides consumers with the opportunity to discharge their unsecured debts. Common debts eliminated by filing for Chapter 7 bankruptcy include: credit cards, medical bills, personal loans and mortgage debts. When a Chapter 7 case is filed, all of the debtor’s property is temporarily under supervision of the bankruptcy court and a case trustee. Property that is considered “exempt” is retained by the debtor; conversely, property that is “nonexempt” is subject to sale by the bankruptcy trustee with the proceeds distributed to creditors. It is important to note that as a practical matter, most people are able to shed their unsecured debts through Chapter 7 with out losing any property. A typical Chapter 7 bankruptcy case usually lasts between 4 to 5 months. At the end of the process, the bankruptcy court issues a discharge that operates as a permanent injunction preventing creditors from seeking to collect on debts that were included in the bankruptcy.
Is it possible to file bankruptcy virtually without meeting my attorney?
In a word, yes, in light of the changing business landscape during COVID-19, even the bankruptcy courts are easing up on in person requirements, such as the meeting of creditors. The coronavirus is shaping up to be a once in a lifetime financial event. Although no one knows what the economic impact will be (and…Read more
How to get a PPP loan forgiven – a step by step guide
On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act, Public Law 116-136 (the “CARES Act,”). Under the CARES Act, Congress authorized $349 billion for the Small Business Administration’s (“SBA”) Paycheck Protection Program (the “PPP”), and is likely to soon add an additional $250 billion as funds quickly ran out…Read more
Biden on Bankruptcy: 10 Ways the Bankruptcy Laws Could Change if Democrats Take the White House
In the last few weeks as Vice President Biden has solidified his position as the presumptive Democratic Party Presidential nominee, he has adopted positions of his former rivals to unify the party, including endorsing Senator Warren’s proposals relating to the changes adopted in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Public Law…Read more
Chapter 7 Bankruptcy in Oklahoma: What You Need to Know
Oklahoma’s median household income is below the national average, but that’s not necessarily bad news for Sooner State residents when it comes to debt relief options, such as bankruptcy. Lower costs in key areas balance out lower incomes. The median Oklahoma home sale price, as reported by RealtyTrac, is also a little lower than the…Read more
Chapter 7 Bankruptcy in North Dakota: What You Need to Know
The past decade has been good to North Dakota. During the Great Recession, while median incomes across the country were shrinking when adjusted for inflation, household incomes in North Dakota grew by more than 15%. In 2016, “legendary North Dakota” posted the 10th highest per capita personal income (PCPI) in the United States, at $54,267….Read more
Chapter 7 Bankruptcy in Mississippi: What You Need to Know
Pecans, cotton, catfish, sweet potatoes — all have a huge, if not “capital,” presence in Mississippi. The nickname “Old Man River” is reserved for the Mississippi River, the largest river in the United States and the nation’s chief waterway. The Magnolia State also is rich in history, with the Mississippi Delta considered the birthplace of…Read more