Let the expert practitioners at the Law Offices Of Edwin M. Adeson in Glens Falls, NY, help you get a fresh start with a Chapter 7 Bankruptcy.
Chapter 7 Bankruptcy
A Chapter 7 Bankruptcy is defined as a fresh start, or straight bankruptcy. It can be filed every eight years and is the most common type of bankruptcy filed. Once you file for bankruptcy, all collection efforts stop immediately, including bills, collection letters, harassing phone calls, lawsuits, garnishments, and frozen bank accounts.
A Chapter 7 Bankruptcy eliminates or discharges many types of debt, though it does not eliminate them all. Below is a list of the debt that may or may not be eliminated.
Debt Chapter 7 Eliminates or Discharges:
- Credit Cards
- Personal Loans
- Medical Bills
- Old Utility Bills
- Magazine Subscriptions
- All Unsecured Debt
- Deficiency Balances on Current & Future
- Repossessions & Foreclosures
- Rental Arrearage Debt
Debt Chapter 7 Does Not Eliminate or Discharge:
- IRS & NYS Tax Debt
- Child Support
- Criminal Related Debt
- Educational Debt
Chapter 7 Bankruptcy is also a liquidation process. This means that certain items that are considered necessities of life are protected or exempt, and the court cannot take them away. You may choose either state or federal exemptions, though federal exemptions are usually better with no house or very little equity in a house. State exemptions are usually better when you have more than $20,000 of equity in a residence.
When you file a Chapter 7 Bankruptcy, you can reaffirm certain debts you wish to keep, such as vehicles and real property. If you want to keep those secured items, you need to be current on payments and must continue to make these payments.