02 Mar What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is for individuals, and is known as the liquidation chapter. Some of your unexempt property can be sold under this type of bankruptcy to pay off some of your debts. After the property is sold to pay off a portion of the debts, most or all of your unsecured debt will then be discharged. However, at Millward and Castle, we take pride in making sure your assets are protected and are at no risk of being taken by the bankruptcy court.
You can keep your property, however, if it is “exempt” under the bankruptcy laws. Some of these exempt assets include furniture, clothing, equipment, and motor vehicles. If you do not own a lot of property, all of your property could fall under the exemptions, meaning you would have a no asset case and you would not lose any of your property.
Filing a Chapter 7 bankruptcy does not eliminate all debts, but it can eliminate most of your unsecured debt, such as credit card debt, medical bills, and unsecured loans. Unfortunately, debts such as student loans, child support, alimony, and taxes usually cannot be discharged.
After your bankruptcy is discharged, creditors are permanently prohibited from taking any collection efforts on any of your discharged debt. They can no longer contact you by mail or by phone with those harassing calls. They can no longer file or continue a lawsuit against you for the debt, and can no longer attach your wages or other property to try and satisfy the discharged debt. Secured creditors may still have the right to enforce valid liens, however, such as a mortgage.
If you think that you might qualify to file a Chapter 7 bankruptcy, call Millward & Castle at (606) 546-5114 for a free consultation, and we can walk you through this entire complicated process.