Chapter 7Bankruptcy

When indebted individuals are unable to fulfill their financial obligations, they may choose to file for Chapter 7 bankruptcy. Chapter 7 is the easiest and cheapest form of bankruptcy to process, one that gives people a fresh financial start.  It is also the quickest — from start to finish, it takes approximately three months to complete your case. Under Chapter 7, people can eliminate their unsecured debts. For most people, this includes getting rid of:

  • Credit card debt
  • Personal loans
  • Medical debt

Put a Stop to the Harassment

Once a borrower falls behind on a loan, the lender will usually make phone calls or send letters to the person demanding payment. If you cannot pay, you can expect the lender (or collection agency) to start calling you (or your family or friends) many times each day.

Filing for Chapter 7 bankruptcy will stop the harassment and can provide borrowers with relief from their financial worries. Upon the filing of the bankruptcy petition, a notice is automatically sent to creditors.  From that point forward, creditors must stop their phone calls and other forms of harassment.

Reasons to File for Chapter 7 Bankruptcy

A big benefit of filing Chapter 7 is that indebted people receive an automatic stay on their financial obligations. Under the stay, a court order is issued, one that prevents lenders from attempting to collect a payment from the borrower. The stay occurs right after the individual files for bankruptcy.

It takes approximately three months to complete a Chapter 7 bankruptcy. Once a person completes the process and receives a discharge, he or she is no longer personally responsible for the incurred debt.

Those who file for Chapter 7 bankruptcy are permitted to keep their homes and vehicles as long as they are not behind on making payments for them. However, Chapter 7 does not eliminate:

  • Student loans
  • Most tax bills
  • Domestic support
  • Court fines

Who is Eligible to File?

Those who live in the United States have the option of filing for Chapter 7 bankruptcy. People who have already filed for this type of bankruptcy must wait for eight years before they are eligible to file again.

To determine your eligibility for Chapter 7, you will need to pass an income test. (If your income is too high, you may need to file for Chapter 13 bankruptcy instead.)

Filing eligibility includes having a place to live or a place of business. Those who have property in the United States are eligible to file as well. You don’t have to be employed to file for Chapter 7 bankruptcy.

It can be tough to decide if Chapter 7 is the right bankruptcy option. Let the Guenther Miller Law Group help you with that decision. We have the experience to assess your financial situation to determine if Chapter 7 is the right chapter for you.