A Chapter 7 Bankruptcy allows individuals to get rid of and walk away from most of their debts. It is a legal proceeding that is handled under the jurisdiction of the Federal United States Bankruptcy Court. What to think about:
*Do you want a fresh start from debt?
*Have you ever filed bankruptcy before that resulted in a discharge or dismissal?
*Have you ever received a chapter 7 discharge?
*Are you current on your car note or mortgage payments? If yes, how much are they worth? If no, do you want to keep your car or home?
*Is your tax debt older than 3 years old, or were those taxes filed timely? Some old tax debt is dischargeable in bankruptcy.
*What do you own outright and how much is it worth?
*Have you taken out any recent loans?
*Have you received any large sums of money within the last 2 years, from any source?
Stanton & Worthy Attorneys file Chapter 7 bankruptcies generally to assist people who have minimal assets, such as a car or home, but who have large amounts of unsecured debt (examples are medical bills, credit card bills). A Chapter 7 filing stops garnishments and lawsuits and may also help you with getting monies back that were taken from you pursuant to a garnishment. You will never have to pay for these debts again that you are discharging in a Chapter 7. There are certain types of debts that you cannot rid yourself of, such as recent tax debt, student loans, court ordered damages, criminal penalties, child support, and alimony. Most people are able to keep their property when they file a Chapter 7, but keep in mind that you must be current on payments such as your house or car note. You must be current on leases, such as an apartment or furniture, if you want to remain living there or keep those items.
Keep in mind that your credit WILL NOT be ruined. Most of our clients start rebuilding their credit right after a Chapter 7 discharge, and are able to purchase a home 1-2 years later. Creditors can no longer call and harass you for payments while you are under the protection of the Bankruptcy Court. The Attorneys at Stanton & Worthy are here to serve and guide you as you navigate through all of these questions that you are asking yourself. We will help you pick the best path in Bankruptcy for you and your household.