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. One of the important functions of a bankruptcy attorney is to help you classify whether your property is exempt. Exemption laws vary depending on which jurisdiction you live in. 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. Below, you’ll find hundreds of articles that have been written on the subject of chapter 7 bankruptcy. If, after browsing through these posts, you don’t find the answers that you need, we invite you to post a question to our QA forum. Thank you for visiting the National Bankruptcy Forum.
Filing Bankruptcy in Michigan: an Overview Michigan bankruptcy courts are divided into two districts: the Eastern District and the Western District. The Eastern District of Michigan bankruptcy court is further divided into divisions. Bay City, Detroit and Flint all have a bankruptcy court to serve local debtors. Similarly, on the west side of the state, […]
Filing for Bankruptcy in Arizona is Different Than Other Parts of the Country Most of the bankruptcy information that consumers will find online is geared towards a national audience. In many ways, this makes sense as the chapter 7 process is somewhat similar throughout the country. The bankruptcy code is federal law, meaning that its […]
The Basics of Credit Card Debt and Bankruptcy In an economy where housing problems dominate the headlines, high interest credit cards still remain one of the largest issues consumers face in their fight for financial health. It should come as no surprise to learn then, that credit card debt is still one of the primary […]
I’m Deep in Debt, How Can I Avoid Bankruptcy? Let’s face it, no one wants to file for bankruptcy, however, in certain circumstances bankruptcy is the best solution for dealing with debt that has gotten of control. In this post, we’ll provide some helpful tips for those of you who are dead set on avoiding […]
Bankruptcy Misinformation To many, bankruptcy is a four letter word, an ethical nether region where you mustn’t have your passport stamped upon entry. However, there are numerous misconceptions about the bankruptcy process, that when stripped away, make a difficult decision slightly easier. After all, knowing is half the battle. In this post, we’ll try to […]
Improving credit after bankruptcy or foreclosure Whether you filed Bankruptcy or have faced foreclosure, repossession or a delinquency on a loan, it is a fact of life that your credit score can fluctuate. Access to credit is important when applying for a car or home loan or when starting a new business, the lower your […]
This post was originally published on September 3, 2009. Chapter 13 is one of the most powerful tools for dealing with consumer debt. You can prioritize categories of debt just like in a Chapter 11. I often tell clients that debts are broken down into the following categories when filing Chapter 13 bankruptcy. At the […]
North Carolina is a power of sale foreclosure jurisdiction. This means that unlike many other states in which a lender seeking to foreclose must go through a lengthy judicial process in order to regain collateral, North Carolina lenders may foreclose through a private process. Power of sale foreclosure can happen fast depending on backlog and […]
Everyone preparing to file for bankruptcy wants to know the cost. After all, bankruptcy usually comes at a time when money is tight. Filing Fees and Required Courses Bankruptcy filers must pay a filing fee. For a Chapter 7 case, the fee is $335. For a Chapter 13 case, the fee is $310. The Bankruptcy […]
How Can Credit Card Companies Charge Such High Interest Rates? Usury is defined as the act of lending money at an unreasonably high rate of interest. The practice is frowned upon almost universally and yet credit card companies continue to charge outrageous interest rates. How do they get away with it? At many points in […]