Eliminating Debts through Chapter 7 Bankruptcy
The federal laws have changed, but most people still qualify for Chapter 7 debt relief to wipe out their credit card bills and other consumer debts. The Law Office of Richard Stevenson can explain your options, determine if you qualify and guide you through the process. From the day that you file for bankruptcy, creditors must stop all collection actions and they must stop contacting you.
Richard Stevenson is an experienced bankruptcy attorney representing individuals in
Chapter 7 Bankruptcy — Starting Fresh
Chapter 7 bankruptcy allows you to completely discharge most unsecured debt: debts that are not tied to any specific property, such as credit card and charge card balances, medical bills, and certain back taxes and judgments. Secured debts such as mortgage and car payments, and other non-dischargeable debts such as past due child support, federally guaranteed student loans and recent taxes, are not eliminated. If your petition is granted, the bankruptcy court will liquidate your non-exempt assets to pay creditors as satisfaction of the debt.
It's a chance to start over when your debts exceed your income and you have no hope of ever repaying what you owe. Chapter 7 makes sense for people with lower income and little personal property. Most people do not lose their home, car, retirement savings or other personal property, because of generous exemptions in the law.
Chapter 7 is different from Chapter 13 reorganization , which requires you to pay back a portion of debts. Under Chapter 7, a court-appointed trustee takes control of your non-exempt property and sells it to pay creditors proportionately. The remaining debt is discharged, or completely erased.
Eligibility and Exemptions
When Congress changed the laws in 2005, it introduced an income means test. If your income for the previous six months is below the state median, and you do not have other non-exempt assets to satisfy creditors, you should qualify.
In
· Your home ($50,000 in home equity for an individual, $75,000 for a married couple)
· Your primary vehicle
· Retirement accounts up to $1 million
· Personal possessions up to a set dollar limit
Chapter 7 does not protect: a second home, boats and other "toys," or home value that has appreciated beyond the exempt level. Assets whose value exceed the applicable exemption amount may potentially be sold by the trustee to pay the unsecured creditors.
The Bankruptcy Process
When filing for Chapter 7, you must provide records of assets and debts, current income and expenses, bank statements, recent tax returns and records of ongoing obligations in contracts or leases. The new law also requires proof that you have obtained pre-filing debt counseling from a federally approved agency. Attorney Richard Stevenson will draft the filing petition to ensure that it is thorough, accurate and properly documented.
The bankruptcy court appoints a trustee, whose obligation is to contact creditors and pay them from your non-exempt assets (if any). If your Chapter 7 bankruptcy is granted, you are released for any further obligation to those creditors and any collection actions. You can start fresh.
To explore whether you qualify for Chapter 7 debt relief, contact Attorney Richard Stevenson online or call (760) 729-4700. We offer a free initial consultation, and personally handle your case. We are always glad to take the time to answer all your questions and concerns.
We are a debt relief agency.
We assist people in filing for relief under the Bankruptcy Code.