Chapter 7 bankruptcy gets its name from the specific chapter in the bankruptcy code where its rules and procedures are outlined. In simple terms, think of it as the “Chapter” of the lawbook that provides a script for financial fresh starts. It’s a way to wipe out most of your debts, meaning you don’t have to pay them back. Imagine shedding a heavy backpack full of debt, and that’s kind of what Chapter 7 does for you. It’s a chance to breathe again and focus on rebuilding your financial life. And the good part? You may get to keep certain things like your home and car. So, if debts are overwhelming, Chapter 7 can be your ticket to a new beginning.
We understand that debt can be a heavy burden, and we’re here to help. We’ll work with you to understand your options and determine if Chapter 7 is the right fit for your situation.
What's the difference between Chapter 7 and 13 ?
Should I File for Chapter 7 Bankruptcy?
The first step when considering Chapter 7 bankruptcy involves thinking about your financial goals, evaluating your assets and liabilities and calculating your income based on the means test to determine whether you qualify.
What is your perfect financial situation five years from now:
How are your finances?
What steps do you have to take to get there?
Is your current car still part of the picture?
What about your home or apartment?
While some individuals may qualify for both Chapter 7 and Chapter 13 bankruptcy, the choice between the two often depends on the goals of a client. For example, an individual qualified for Chapter 7 might choose Chapter 13 to safeguard their home, even if it means repaying a portion of their credit card debt. See how your goals impact your decision on which bankruptcy chapter to choose?
We’re here to help you make the best decision for your financial future. Contact us today for a free consultation.
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Common Questions
How Can I Prepare To File For Chapter 7?
Start by gathering financial documents like pay stubs, bank statements, and debt statements. Organizing these early helps us streamline the process. Consider your goals and desired timeline, as specific actions may be helpful depending on whether you prioritize rapid debt elimination or asset protection. We’ll work with you to create a personalized preparation plan for success.
Does Filing Chapter 7 Affect My Child Support Or Alimony Payments?
Chapter 7 doesn’t discharge child support or alimony. Stay current on these payments during your bankruptcy to avoid complications and potential penalties in Family Court.
Will My Creditors Close My Credit Cards After Filing Chapter 7?
Filing for Chapter 7 automatically triggers the closure of your credit cards, preventing further use. While your credit score may dip initially, it’s important to remember that rebuilding is possible. We’re here to empower you with rebuilding strategies and help you navigate responsible credit use after bankruptcy.
What Additional Costs Are Involved Besides The Filing Fee?
Before and after filing for Chapter 7, completing a credit counseling session is mandatory. As this class can be completed at home, this cost, is usually paid directly by the Client. The credit report fee is included in our attorney fees, as is the Court filing fee. We offer transparent, fixed-fee packages for all your bankruptcy needs. Contact us for a quote today.
