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.
Posted by: Rob Cohen
Who Will Know I Filed Bankruptcy?
Worried Who Will Find Out About Your Bankruptcy? Do you worry about who will know that you decided to file bankruptcy? Even though bankruptcy doesn’t carry the same negative connotation it used to, some people still worry that their friends and coworkers will find out. The good news is, that except for a select few,…Read more
Posted by: Rob Cohen
Are You Judgment Proof?
We all know why people are considering filing for bankruptcy. We have seen an unprecedented “black swan” type event in the coronavirus. Unemployment numbers are way up and many Americans face an uncertain financial future. Under these circumstances, bankruptcy is a natural consideration. Those thinking of filing bankruptcy, or even families facing mounting credit card…Read more
I’ve Found A New Job, Will I Still Be Able To File For Bankruptcy?
Does a regular paycheck disqualify a consumer from filing for chapter 7 bankruptcy? If you’ve been researching your bankruptcy options, you’ve likely heard of the means test. Indeed, much has been written about the means test, the vaunted gatekeeper to chapter 7 bankruptcy protection implemented by Congress as part of BAPCPA in 2005. Under that…Read more
Exemptions: What Can I Keep if I File Bankruptcy?
Many people mistakenly believe that they will lose everything when they file for Chapter 7 bankruptcy. In fact, in the thousands of bankruptcy cases I have filed for clients over the years, this is one of the biggest questions I get – “will I lose all my property in a bankruptcy?” This is not the…Read more
Posted by: Erik Clark
All’s Not Forgiven When Debts Are “Forgiven”
Debts discharged in bankruptcy are not taxable events.Read more
What is the Difference Between Surrendering a Home and Foreclosure?
What is the difference between surrendering a home in bankruptcy and losing a home to foreclosure? Many consumers are confused by the interplay between the two. When you file bankruptcy and surrender a home, you give the property back to the lender. When a lender forecloses on your home due to non-payment, they take the home…Read more