Chapter 7 Bankruptcy - A Fresh Start

Chapter 7 bankruptcy, often referred to as a fresh start or liquidation bankruptcy, involves the bankruptcy trustee gathering and selling the debtor's nonexempt assets to pay creditors according to the Bankruptcy Code. Chapter 7 bankruptcy eliminates most unsecured debts, including personal loans without collateral, medical bills, and credit card debt.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often referred to as a fresh start or liquidation bankruptcy, involves the bankruptcy trustee gathering and selling the debtor's nonexempt assets to pay creditors according to the Bankruptcy Code. However, the code allows you to keep specific exempt property, such as your home, vehicle, and personal belongings. Chapter 7 bankruptcy eliminates most unsecured debts, including personal loans without collateral, medical bills, and credit card debt.

Eligibility Criteria

Only some qualify for Chapter 7 bankruptcy. Specific eligibility criteria must be met, and you must consult with an experienced attorney to determine if you qualify. Attorney John W. Evans, Jr. can guide you through the evaluation process to see if Chapter 7 bankruptcy is your best option.

The Process

When you file for Chapter 7 bankruptcy, the process generally involves the bankruptcy trustee gathering and selling your nonexempt assets. The proceeds from these assets are then used to pay your creditors. However, you can retain specific exempt properties, such as your home, vehicle, and personal belongings. Consulting with Attorney John W. Evans, Jr. will provide you with a clear understanding of the steps involved and what to expect.

Benefits of Filing

Filing for Chapter 7 bankruptcy can discharge most unsecured debts, including personal loans without collateral, medical bills, and credit card debt, offering you a fresh start. However, some debts, like back taxes, alimony, child support, and student loans, typically are not eligible for discharge under Chapter 7. Suppose these types of debts are a concern. Attorney Evans can discuss whether Chapter 13 bankruptcy might be a more suitable option in that case.