Chapter 7 Bankruptcy is called a “liquidation” bankruptcy. Chapter 7 bankruptcy is designed to help people who are unable to pay their existing debts. The purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts. When you file for Chapter 7 bankruptcy you can wipe out debt from:
- Credit cards
- Store cards
- Personal loans
- Checking account overdrafts
- Medical and dental bills
- Certain tax obligations
- Social Security and unemployment overpayments
Under Chapter 7 a trustee takes possession of your property that is not considered “exempt.” Common
property types that you can keep when you file for Chapter 7 bankruptcy are:
- Bank accounts with a total value of up to $2,500
- Automobiles with equity of up to $2,400
- A home you live in with equity of up to $50,000
- Household goods and furnishings with a value of up to $5,000
- Clothing and jewelry with a value of up to $5,000
- Pension plans, IRAs, 401k, 403b, and other employer-sponsored retirements accounts
Unfortunately, not every debt can be wiped out. Debts that are not wiped out include:
- Most taxes
- Debts obtained through frad or deceptions
- Child support and alimony payments
- Court-ordered fines and criminal restitution
- Student loans
- Debts for personal injuries caused by driving while intoxicated
When you’re ready to get out of debt and get a fresh financial start, all you need to do is contact me or click at the top of this page to set up a free, no-obligation phone consultation.
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