Chapter 7 Bankruptcy Attorney
The decision to file for bankruptcy is never a minor one, and certainly not a choice to be taken lightly. While it isn’t the right solution for everyone, and is no magic fix for long-standing financial issues you’d simply rather not deal with, Chapter 7 bankruptcy has helped millions of Americans get a second chance at a successful financial future.
When most people think of the word “bankruptcy”, they think of Chapter 7. It permits you to forgive or “discharge” most of your debts but still allow you to keep all or most of your property. A “discharge” is a court order that releases your from all of your dischargeable debts and orders your creditors not to attempt to collect them from you. A debt that is discharged is one that the debtor is released from and does not have to pay.
In a Chapter 7 Bankruptcy case you can discharge most unsecured debts such as credit card debts, signature loans, and medical bills, if you lack the ability to repay them. Although you are not required to repay any dischargeable debts, you may elect to reaffirm (remain personally liable to pay) specific debts if they do not create an undue hardship for you. In a Chapter 7 you typically reaffirm and continue to pay secured debts such as your home mortgage and your car and furniture loans.
Certain debts cannot be discharged in Chapter 7 including, but are not limited to, student loans, child support, alimony, property awards in divorce cases, certain taxes, debts obtained by fraud, embezzlement or larceny, debts from intentional injuries, criminal fines, penalties and restitution and certain debts incurred shortly before filing bankruptcy.
Once the bankruptcy petition is filed, an “automatic stay” goes into effect. The automatic stay prohibits creditors from making any attempt to collect their debts, even while the bankruptcy proceeding is still pending and before the discharge is granted. All creditor harassment, such as annoying phone calls and threatening letters, cease immediately. All legal proceedings and remedies are also stopped once the bankruptcy case is filed. So all lawsuits, auto repossessions, home foreclosures and even IRS tax seizures come to an end.
The Law Office of David T Cain also handles Chapter 11 Bankruptcy and Chapter 13 Bankruptcy.
call (210) 308-0388