There are many reasons why individuals or companies might be unable to pay their debts. Fortunately, the law allows qualified parties to file for Chapter 7 bankruptcy and have many of their debts discharged. U.S. bankruptcy laws can be complicated and the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) added more requirements for Chapter 7 filers. You should always consult with an experienced chapter 7 bankruptcy lawyer who can help determine whether Chapter 7 is right in your situation, and who can navigate the bankruptcy process for you.
Filing for Chapter 7 Bankruptcy
As soon as you file your bankruptcy petition, an automatic stay goes into effect that halts all collection efforts of your creditors, including lawsuits, wage garnishments, foreclosure or eviction proceedings, and more. Chapter 7 allows the bankruptcy trustee to liquidate certain assets to pay toward your debts, though a skilled attorney will be able to help consumers apply numerous exemptions to protect property. For companies filing for Chapter 7, the bankruptcy trustee will oversee the orderly liquidation of the business and debt payment.
At the end of a successful Chapter 7 case, the bankruptcy court will discharge remaining debts, including:
- Credit card balances
- Medical bills
- Overdue rent and utilities
- Personal loans
- Some tax debts
- Certain legal judgments
After a discharge, you will have no further legal obligation to make any payments on those debts again, which can free up funds for your mortgage, auto loans, and other nondischargeable debts.
Find Out How Our Chapter 7 Bankruptcy Lawyers Can Help
Many people and companies benefit from Chapter 7 bankruptcy, though the process can be confusing. To avoid any unnecessary delays or complications, you should speak with a bankruptcy attorney at Diosdi & Liu, LLP before filing. Call us at 833.829.4376 or contact us online today.