Cornerstone Law Corporation

Chapter 7

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
  • Lawsuits
  • 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!

James Harnbuckle

Get your questions answered - Call for a free case evaluation (888) 533-4384