Chapter 7 bankruptcy allows the debtor to cancel all of his debt or the majority of his debt, but keep his property. A debtor can usually keep secured property like a house or vehicle, as long as they continue to pay the loans on time.
Chapter 7 bankruptcy cancels the following types of debt:
- Credit cards
- Medical bills
- Personal loans
- Legal judgments (excluding fraud and criminal judgments)
- Deficiencies related to repossessed vehicles or property foreclosures
- Some IRS and income tax debts
- Personal injury settlements (excluding DWI or criminal judgments)
Chapter 7 is the most frequently used form of bankruptcy. It gives debtors a chance to wipe the slate clean and begin again. Out of control debt is a problem being faced by an increasing number of people. Filing for Chapter 7 bankruptcy lets these struggling people get rid of their debt and start over financially.
Chapter 7 bankruptcy DOES NOT cancel the following types of debt:
- Student loans (excluding cases of extreme hardship
- Debts relating to particular types of taxes
- Alimony, maintenance or support payments
- Fines, penalties and criminal restitutions
- Debts relating to personal injuries caused by driving while intoxicated.
Contact us at (888) 533-4384 to schedule an appointment for Chapter 7 bankruptcy help!
Get your questions answered - Call for a free case evaluation (888) 533-4384