Chapter 7 Bankruptcy | Eliminate Medical Bills, Credit Card Debt, Personal Loans and other Unsecured Debt
What Is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy of the US Bankruptcy Code typically eliminates most unsecured creditors. Unsecured creditors include, but are not limited to, credit cards, personal loans, debt from previously repossessed automobiles, medical bills, old utility bills and some taxes.
Most individuals who file for Chapter 7 bankruptcy have enough income to pay for the necessities, but no extra money to pay off unsecured creditors. Ultimately, no matter how hard they try, they are unable to get ahead.
Essentially, a Chapter 7 bankruptcy filing illustrates an individual’s inability to enter into some form of payment plan with creditors. In other words, you have enough money to pay your rent, car payment, groceries, gas and basic living expenses but nothing extra to pay credit cards, medical bills or other unsecured debts.
The bankruptcy petition has specific, logical, household expenditures that provide the framework for a legitimate discharge of debts. If this sounds complex – don’t worry. The bankruptcy attorneys at Foster Law Offices, LLC will work with you to gather the necessary information and to complete the bankruptcy petition. Our goal is to make this process as seamless as possible while helping you get the debt relief you deserve.
That said, while Chapter 7 bankruptcy is the most efficient form of bankruptcy – it isn’t the right choice for everyone. You should consult an attorney to discuss your unique financial situation and determine which course of action would be most appropriate for your situation.
How Does Chapter 7 Bankruptcy Work?
The first step is to schedule a free consultation with a licensed Pennsylvania bankruptcy attorney. Our Pittsburgh bankruptcy office has two bankruptcy lawyers who offer free consultations. Once it is determined that filing for Chapter 7 bankruptcy is most appropriate for your situation, we will gather the necessary documents to prepare a draft of the bankruptcy petition and all schedules. After we receive the required information to file your case, a bankruptcy lawyer will file your case with the Court and a case number will be assigned. Our firm will notify all of your creditors of your filing and work with you to keep you informed and involved in the entire process. Remember, the ultimate goal of filing for bankruptcy is to achieve long-term debt relief and a fresh financial start.
What Debts CANNOT be eliminated in Chapter 7 Bankruptcy?
• Debts incurred through fraud;
• Child and spousal support;
• Debts incurred as a property settlement in a divorce;
• Some taxes including income and real estate. However, this area of law is somewhat complicated and can be discussed in detail at the initial consultation;
• Most student loans;
• Debts for personal injury and death caused by your driving a motor vehicle while intoxicated;
• Debts for personal injury and property damage incurred through willful or malicious harm;
• Criminal fines and penalties.
Why do I need an attorney for Chapter 7 Bankruptcy?
The Commonwealth of Pennsylvania does not require that individuals hire a bankruptcy attorney to file for Chapter 7 bankruptcy. That said, there is no such thing as a “typical” bankruptcy filing. The filing process is far from easy and the Bankruptcy Courts and the Federal guidelines are very stringent. “DIY” bankruptcy filing could result in thousands of dollars of additional debt and even the loss of assets, such as your home or interest in other property.
At Foster Law Offices, we are licensed bankruptcy attorneys who focus exclusively on the practice of bankruptcy. We hire a roofing contractor when our roof needs repaired & a mechanic when our vehicle needs fixed — give us a call and schedule a free consultation if you need assistance with debt relief or bankruptcy representation.
What is a basic timeline for a Chapter 7 Bankruptcy?
In general, the Chapter 7 bankruptcy process takes APPROXIMATELY 5 months from filing to discharge. However, here can be a variety of circumstances which can trigger further investigations by the Court, which would obviously lengthen the process. At the initial consultation, I am usually able to tell my clients how long a case will last based on my past experience. You can be sure that my office will walk through this process step-by-step. We realize you have never been in this situation before and we take each client’s case slowly to ensure all questions are answered in a timely manner.
How Do I File For A Chapter 7 Bankruptcy?
Filing for bankruptcy can be complex, as there are several rules and procedures involved. The staff at Foster Law Offices, LLC can assist you with a Chapter 7 bankruptcy. Contact Foster Law Offices today for your free, personalized consultation.