New Tomorrow Law, APC

Bankruptcy FAQs

What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy is a legal process that allows individuals or businesses to discharge most of their unsecured debts, such as credit card bills or medical bills, and start fresh. In exchange, the debtor may have to surrender some of their assets to a court-appointed trustee, who will sell them to pay off creditors.

vise squeezing a wallet
vise squeezing a wallet

What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy is a legal process that allows individuals or businesses to discharge most of their unsecured debts, such as credit card bills or medical bills, and start fresh. In exchange, the debtor may have to surrender some of their assets to a court-appointed trustee, who will sell them to pay off creditors.

To be eligible for Chapter 7 bankruptcy, you must pass the means test, which looks at your income and expenses to determine if you have enough disposable income to repay your debts. If you do not have enough disposable income, you may be eligible to file for Chapter 7 bankruptcy.

The Chapter 7 bankruptcy process typically takes about four to six months to complete, but it can vary depending on the complexity of your case and the court’s caseload.

Most unsecured debts, such as credit card bills, medical bills, and personal loans, can be discharged in Chapter 7 bankruptcy. However, certain debts, such as student loans and tax debts, are generally not dischargeable.

In a Chapter 7 bankruptcy, you may be required to surrender some of your assets to a court-appointed trustee, who will sell them to pay off creditors. However, certain assets may be exempt from seizure, depending on your state’s laws. It’s important to consult with a bankruptcy attorney to determine what assets are exempt in your state.

Yes, consumer debtors are able to file for a Chapter 13 bankruptcy. A Chapter 13 filing allows debtors to put a freeze on creditor collection efforts and through the bankruptcy court, create a repayment plan for up to 60 months. Unfortunately due to many factors, including the length of the repayment and the cumbersome rules a debtor must follow while in the plan, the completion of a Chapter 13 is lower than a Chapter 7 filing. Our goal is to quickly set our clients up for financial success in the future and we do not offer representation in Chapter 13 filings. If you do not qualify for a Chapter 7 filing or wish to explore a Chapter 13 filing, we will gladly provide you with a referral to a firm that may assist you.

Get started on your Chapter 7 bankruptcy today.
Call us to learn more by scheduling a 30-minute Discovery Call to see if Chapter 7 bankruptcy is right for you.
Or, use our online scheduler below to get started today.

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