WHAT IS CHAPTER 7 BANKRUPTCY?
Chapter 7 personal bankruptcy is the most common way for individuals to deal with the crush of unrepayable debt. Called liquidation bankruptcy or ‘straight bankruptcy’, Chapter 7 is a process organized under federal law to provide individuals and companies a way to discharge unsecured debts when they can’t be repaid.
WHAT IS CHAPTER 7 BANKRUPTCY?
Chapter 7 personal bankruptcy is the most common way for individuals to deal with the crush of unrepayable debt. Called liquidation bankruptcy or ‘straight bankruptcy’, Chapter 7 is a process organized under federal law to provide individuals and companies a way to discharge unsecured debts when they can’t be repaid.
What About My debt?
Filing Chapter 7 bankruptcy is a good option when you have more debt than you can repay or too many creditors for debt settlement. Chapter 7 enables individuals to eliminate credit card debt, medical bills, judgments, personal loans and other types of debt for a fresh financial start. The principle advantage of filing Chapter 7 is it results in an often complete forgiveness of debt while protecting exempt assets.
What About My House or Car?
In a Chapter 7 Bankruptcy, the debts from most mortgages and liens is not discharged as to the property. If a debtor wants to keep a house, car, and other items which are security for a loan, payments must continue to be made. Generally, to discharge a car loan without payment the debtor must surrender the car to the creditor.
Qualifying for Chapter 7 Bankruptcy & Length of Process
In order to qualify for Chapter 7 bankruptcy, the nature of the a person’s debts, income and financial situation is evaluated. If there’s a great deal of disposable income, a person cannot file under Chapter 7. The Chapter 7 bankruptcy process generally lasts three to four months, however rare cases can continue on for several years if the trustee is administering assets.
Joshua Curtis
Robert Casteel
Steve Palmer
Chapter 7 Bankruptcy Lawyer Serving Lynnwood & Snohomish County
Proudly serving the communities of Lynnwood, Edmonds, Everett, Mill Creek, Bothell, Shoreline, Brier, Mountlake Terrace, Kenmore, Woodinville, Lake Forest Park, Northgate, Seattle and all north King & Snohomish Counties.