Chapter 7 Bankruptcy
Chapter 7 bankruptcy has often been called "fresh start" bankruptcy because it erases most debts altogether. Chapter 7 bankruptcy is often the most appropriate strategy for people who have incurred overwhelming medical, or credit card debt, loan refinances or judgments, or who have lost an income source altogether through a layoff, divorce, or loss of child support.
Chapter 7 bankruptcy involves liquidation of certain assets in order to completely discharge your debts. This includes mortgage debt, credit card debt, and more.
If you prefer to liquidate, you do not have to pay any amounts on your bills unless you have too many assets. For example, if you have two cars in your name, you may have to buy one back from the bankruptcy court. Chapter 7 liquidation allows the exemption of certain assets, including a car and your homestead.
If you are behind on mortgage payments, filing Chapter 7 bankruptcy can give you time to negotiate with your lender to keep your home. Once you have completed all of the requirements and the court discharges the bankruptcy, you will be starting over with a clean slate. All credit cards, medical bills and certain other bills will be wiped out. While taxes due to the Internal Revenue Service and certain other taxes cannot be wiped out, filing bankruptcy gives you time to work out a solution with the agencies.
When you first meet with Attorney Taylor and decide that filing Chapter 7 is the answer to your problems, she will tell you which documents you need to get your case started. Documents may include tax notices, credit card bills, collection notices, bank statements and your most recent mortgage statement.
Instead of worrying about creditors harassing you, contact Attorney Kimberly Taylor for a consultation to determine whether a Chapter 7 liquidation bankruptcy is your best option to end creditor harassment and the worries of overdue bills.