If your credit card balance keeps getting higher and higher, or your medical bills are stacking up, you might be considering filing for Chapter 7 bankruptcy. This is a big decision. While there are a lot of benefits to pursuing Chapter 7 bankruptcy, it’s essential to get all of your key questions answered.
Our experienced bankruptcy attorneys reveal the top questions you should ask when filing for Chapter 7 bankruptcy.
What Is Chapter 7 Bankruptcy?
First of all, it’s essential to know what exactly Chapter 7 bankruptcy is, and how it differs from another popular form of bankruptcy, Chapter 13. Chapter 7 is known as a liquidation bankruptcy. During Chapter 13 bankruptcy, you set up a repayment plan with the court and pay off debts over three to five years. With Chapter 7, some of your assets may be liquidated to pay off some debts, and the rest are typically discharged. You will not need to set up a repayment plan, and in most cases, the majority of your assets will be marked exempt and will not be liquidated.
What Is the Timeline for Chapter 7 Bankruptcy?
The exact timeline of Chapter 7 bankruptcy cases can vary based on your situation, the amount of debt you have, the types of assets you have, and more. However, in general, these cases can be wrapped up in a few months. This is much different than Chapter 13 bankruptcy, which is not resolved until the repayment plan is complete, so around 3 to 5 years.
Which Debts Will Be Discharged?
When filing for Chapter 7 bankruptcy, you might be worried about how much debt you’ll be left with after the bankruptcy is finalized. The good news is that all of your unsecured debts – like your credit card and medical bills – can be discharged. Your secured debts cannot be discharged. This can include child support, spousal support, student loans, and some tax debts.
Will I Lose My House?
One of the top questions we get from clients filing Chapter 7 is if they will lose their house. It can depend on your situation, but in most cases, you can keep your house. You can protect key assets by marking them exempt. When you do this, they cannot be liquidated during your bankruptcy proceedings. Often, you can mark your house as exempt. Of course, the best way to determine if you can do this is to work with an experienced bankruptcy attorney.
How Long Does a Chapter 7 Bankruptcy Stay On My Credit Report?
Generally, when you file for Chapter 7 bankruptcy, it will stay on your credit report for 10 years. This is a key item to discuss with your bankruptcy attorney, as it is an important factor to consider when filing for bankruptcy. However, getting out of a suffocating amount of debt can be worth taking the hit on your credit report – and can help you rebuild your credit as you will stop defaulting on payments.
Why Do I Need a Bankruptcy Attorney?
When considering filing for bankruptcy, it’s essential to hire an experienced attorney and not try to file on your own. Bankruptcy attorneys live and breathe bankruptcy laws. While this might be your first time navigating bankruptcy, they do it ALL the time and have worked through many different experiences. With your financial future on the line, you need an expert to represent you.
Let Us Help You
When you are considering Chapter 7 bankruptcy, let our lawyers at The Law Offices of Alexzander C.J. Adams, P.C. help. We will help you navigate the ins and outs of your bankruptcy. We work for you, the people, and not institutions. Contact us for a free case evaluation, or no-obligation consultation. We are dedicated to helping you overcome this small bump in the road and assisting you to get on with your life.
