Chapter 7 Bankruptcy is known as the bankruptcy to “wipe the slate clean.” It is available to those who qualify for needing a fresh start with little or no debt. The Bankruptcy Court appoints a Trustee (an attorney) to oversee the debtor’s case. Chapter 7 Bankruptcy is normally discharged within several months of filing the case.
If you’re facing Chapter 7 Bankruptcy, Groce & DeArmon, P.C. can help.
The Trustee will review all the property and debts of the debtor to see what property can be kept and what needs to be sold, along with what debts can be included in the bankruptcy.
Individuals may be allowed to keep some exempt property.
Other assets may be sold by the Trustee to repay creditors. Or the attorney may negotiate with creditors if the debtor chooses to continue to make payments. On the other hand, the creditor and debtor may both agree on a settlement payment to absolve the debt owed.
Groce & DeArmon, P.C. can advise you on what the Court will allow you to keep and what it requires you to sell to repay your debt.
Any unsecured debts (debts not guaranteed by collateral such as credit cards) will be wiped out in the bankruptcy, except for child support or spousal support-related debts, income taxes less than three years old, property taxes, student loans, and any fines and restitution imposed by a court.
Here are certain factors that the court considers:
- A debtor can only file a Chapter 7 bankruptcy once every eight years.
- The gross income of the household from all sources averaged over 180 days from the date of the filing and the size of the household impacts what type of bankruptcy case a debtor can file.
- The amount of equity that the debtors have in a property and whether there are secured debts impact the type of bankruptcy case filed.
Bankruptcy Code Requires Education Before Filing
This must be completed through a non-profit, court-approved agency that provides credit counseling.
Once the bankruptcy is approved by the court, the Chapter 7 Bankruptcy will remain on the debtor’s credit report for 10 years from the date of filing the petition.
Benefits of Hiring a Bankruptcy Lawyer
Chapter 7 Bankruptcy requires you to fill out lengthy and convoluted paperwork. It’s also time sensitive. You can only file once every eight years. There’s a deadline for submitting it.
If you miss it, that might mean delays in the process, dismissal of your case or other consequences.
Hiring a bankruptcy lawyer saves you time, hassle and headache — ensuring:
- Accurate documents are submitted
- You’re positively represented during debt reaffirmation hearings
- Expert guidance and knowledge is provided during the filing process
Get Legal Help in Springfield, Missouri for Chapter 7 Bankruptcy
Contact Groce & DeArmon, P.C. for a free legal aid consultation to see if you qualify. Our experienced attorneys can guide you through the process of filing for bankruptcy with ease and professionalism.