Chapter 7 bankruptcy is sometimes called "straight" bankruptcy. This bankruptcy cancels most of your debts. In exchange, you might
have to surrender some of your property, but this is not always the case.
Stopping Harassment
Filing any bankruptcy puts into effect
something called the "automatic stay." The automatic stay immediately stops your creditors from trying to collect what you owe them.
Filing Information
Prior to filing a bankruptcy, you must meet with an approved credit counseling agency no more than 180 days before
filing a bankruptcy petition. Our firm has a list of counseling agencies and most credit counseling can be done via the internet from
your home. All Ch. 7 & Ch. 13 Debtors must also complete a Financial Management Course before they receive a discharge of debts.
A Chapter 7 discharge ends the debtors personal liability on dischargeable debts. However, some types of debts may not be discharged.
Student loans, certain taxes, child support and alimony claims are some debts that cannot be discharged in bankruptcy. Generally,
all of your unsecured debts will be discharged. Unsecured debts include personal loans and credit cards issued by banks, such as Visa,
MasterCard, American Express, or Discover, and other credit cards used to purchase consumable items such as clothing, food, vacations,
etc. Your personal liability for secured debts will also usually be discharged. Secured debts include those debts where the creditor
has a security interest in your property to guarantee payment. The most common secured debts are mortgages and car loans. However,
if you wish to keep the property secured by the debt, you will have to continue making the regular payment.
What about my property?
Contrary
to what you may think, most people are able to keep their property in a Chapter 7 case. This will depend on the amount of exemptions
you are entitled to. Essentially, an exemption is a certain value of property that you are allowed to keep.
In order to file your
bankruptcy, our office needs complete information about your debts including the creditors name and address, the approximate date
the account was opened, the approximate amount owed, the account number, any co-debtors (anyone other than yourself, or yourself and
spouse if filing jointly), and other information concerning your assets and liabilities. We also must have your most recent pay stubs
for the past six months, and you must have filed all tax returns. You can download our intake sheet using the button on the left.
The Spagnola Law Firm is a federally designated debt-relief agency. We help people file for bankruptcy relief under the Bankruptcy
Code.
