Overview

Congress has set up Brankruptcy laws, referred to as the Bankruptcy code. Chapter 7 refers to that chapter which allows the debtor to cancel most of their debts. It is often referred to as a “Liquidation” case because in Chapter 7 the court may take some of the debtors non-exempt property to pay a portion of their debt.

 

Under the law the debtor is allowed to keep their necessary property, such as a house, home furnishings and appliances, vehicles etc. Carey pickford give his clients advice as to wheter or not they the debtor may lose some of their property, in most instances though, they get to keep all of their property.

 

Qualitication

In order to qualify for Chapter 7, a debtor must first meet certain requirements:

 

• Income

• Living Expenses

• Family size

• Extent and nature of debt

 

The goal of Chapter 7 Bankruptcy is to get rid of, or discharge, most of the debt. In Chapter 7 a debtor may chose to keep certain debt (car or house payments), so that they can keep said property. In some cases the debtor may wish to surrender the property so that they will not have to keep making further payments.

 

Debtors should keep in mind that certain debts are non dischargeable in bankruptcy. These types include student loans,  fines, child support, spousal support obligations, and taxes.

 

If you have any questions as to wheter you may or may not qualify for Chapter 7 Bankruptcy, Schedule and appointment or give us a call. We will help evaluate your circumstances and help advise you.