Chapter 7 Bankruptcy

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.