Chapter 7 Bankruptcy
Erase Debt with "Traditional Bankruptcy"
Chapter 7 bankruptcy will eliminate unsecured debts, such as credit cards, utility bills, medical bills, personal loans and debts owed on a repossessed car. Mortgage foreclosure deficiency judgments can be eliminated. Secured debt can be eliminated if you wish to return the collateral to the lender, or you can sign a reaffirmation agreement to keep the collateral and keep paying that particular debt. Let Attorney Robert Nickerson help!
Debts not covered
A Chapter 7 will also not eliminate debts such as student loans, recent tax bills, parking tickets, child support, alimony payments, or accidents caused by drunk driving. It will also not eliminate charges made on a credit card 90 days before filing for bankruptcy. Those types of debts can only be dealt with through Chapter 13. Let Attorney Robert Nickerson help!Avoiding problems when filing Chapter 7 Because of the many nuances in Chapter 7 law, the specific terms of any filing will only become clear once the facts of a particular situation are known. If you are considering filing Chapter 7, there are a few things you should not do:
- Do not make any more charges or take any cash advances on any of your credit cards
- Do not make any property transfers
- Do not pay off one of your credit cards. That is called a "preference" and will make it more difficult for you to get a discharge
The Chapter 7 filing process
Filing Chapter 7 is relatively easy. There are typically no court appearances necessary. You and your attorney need only to appear for a very informal meeting that takes place about five weeks after your case is filed. This meeting is referred to as a Section 341 Meeting. The purpose of this meeting is for a court-appointed trustee to ask you a few very brief questions to determine whether you have any non-exempt assets. Although your creditors are given notice of this meeting and are permitted to question you, usually they are not present at this meeting. The meeting generally takes less than five minutes. After the meeting, all you have to do is wait about two-and-a-half months for your discharge papers to arrive in the mail.
Disclaimer: The information provided here is to be used as general information only and is not intended to suffice as legal advice upon which you can rely for your particular situation. In the event you have specific questions, please call us or another qualified attorney.
We are a designated debt relief agency under the Federal Law, and we provide legal assistance to consumers seeking relief under the bankruptcy code. We are a Debt Relief Agency. We help people to file for bankruptcy under federal law. For more information about bankruptcy law in Michigan, visit our Frequently Asked Questions page.