Chapter 7

Chapter 7 Paralegal

A Chapter 7 bankruptcy allows you to discharge debt including consumer credit card debt, medical bills, many items in collection, and other unsecured debt while usually keeping all of your property. A Chapter 7 bankruptcy is chosen when a person's debts are too high to repay given their current income.

Filing a Chapter 7 bankruptcy in court automatically stops harassing phone calls from collectors. Filing also stops wage garnishments and other collection actions.

The most common reasons for filing Chapter 7 bankruptcy are divorce, illness, loss of job, personal crisis, or because of overuse of credit cards. Chapter 7 bankruptcies are by far the most common type of personal bankruptcy.

common reasons to choose chapter 7

A Chapter 7 bankruptcy may be a better choice if one or more of the following is true:

Your income is low and barely covers your necessary monthly living expenses like rent and food;
The biggest problem is credit cards or medical bills;
You have no financial ability to repay your debts;
You want to surrender your home or your vehicle because you can no longer afford it

Disclaimer

These materials have been prepared by Jennie Patton, Attorney at Law, for informational purposes only and are not legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship. Internet subscribers and online readers should not act on this information without seeking counsel. The information contained on this web site is provided only as general information and may or may not reflect the most current legal developments. This information is not intended to constitute legal advice or to substitute for legal advice obtained from a duly licensed attorney.