In a Chapter 7 Bankruptcy, all of your non-exempt assets are liquidated and the distributions of the proceeds are paid to your creditors. Most of your unsecured debt will be eliminated. Debtors typically file a Chapter 7 Bankruptcy to wipe out all unsecured debts they have accumulated. This includes credit card debts, lines of credit, payday loan debt, medical bills, mortgage foreclosure, deficiencies, repossessions, lawsuits and other unsecured loans. This is usually a quicker process than any other form of bankruptcy and takes about six months to complete. This is the preferred process for those with little to no assets, or only exempt assets, and low to moderate income. This type of bankruptcy is called “liquidation.”
Most of the debts mentioned above are discharged, meaning creditors no longer have the legal right to come after you ever again for the payment of the debts and the creditors are wiped out.
However, various secured debts, such as child support obligations, student loans, certain tax debts, and/or various criminal fines cannot be discharged in a Chapter 7 Bankruptcy.
In a Chapter 7 bankruptcy, Van Law Firm would collect all your documentation and review them for accuracy. Then, we would file a petition for bankruptcy and order an automatic stay to stop all collection activities. That means we will stop creditors from pursuing you for your unsecured debt.
To learn more about the Chapter 7 Bankruptcy process, click here!
Please feel free to contact us today so that we may discuss the options that are available to you.
Call Van Law Firm at 702-529-1011