Chapter 7 Bankruptcy

A Chapter 7 Bankruptcy case can provide a "fresh start" for individuals in financial distress. Individuals, married couples, and businesses can file for bankruptcy under Chapter 7. Not everyone is eligible to file a Chapter 7 case. In some cases, if you have too much income (as determined by a formula called the means test) you may have to file a Chapter 13 case and pay your debts over time through a "Chapter 13 plan."

How Chapter 7 Works

After a Chapter 7 case is filed, a Chapter 7 trustee will be appointed to your case. The trustee's job is to sell all nonexempt assets and distribute any money recovered from those sales to your creditors.

Filing a Chapter 7 bankruptcy does not necessarily mean that you will "lose everything." You may be able to keep all exempt property. Exemptions are determined by state law, and they allow you to keep any equity in property up to certain amounts. You may also choose (subject to court approval) to keep making payments on existing debts (such as car loans) in order to avoid having to surrender the property. This is called "reaffirmation." Reaffirming a debt is not always the best option, especially if you would have difficulty making the payments. You should speak with Speights Law to discuss what is best for you.

After the trustee has finished selling your nonexempt assets, you will receive a discharge of most of your debts (some debts are extremely difficult to discharge in bankruptcy, such as student loan debt). This means that you are no longer obligated to make payments on any of those discharged debts, giving you the "fresh start" you need to rebuild your finances.

Schedule A Free Consultation

To arrange a time to discuss bankruptcy with one of our lawyers, please call us at 770-383-1450 or contact us online. We are available for evening and weekend appointments.

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.