Chapter 7 bankruptcy, also called liquidation, is the most common type of bankruptcy and completely eliminates your dischargeable debt forever. Individuals who are granted Chapter 7 bankruptcy discharges have proven to the court that they have no realistic way to repay their debt over the course of the next three to five years.  When Chapter 7 is awarded, the debtor is legally excused from having to repay any unsecured debts, and most debtors are able to keep all properties. Typically it takes a total of three to four months for a Chapter 7 bankruptcy case to be filed and discharged.

Your attorney will help you determine which of your debts you may “reaffirm”, taking them out of the bankruptcy so you can keep and continue to pay for certain assets.  Your bankruptcy attorney can also tell you which of your assets are covered by “exemptions”, protecting them from the liquidation aspect of Chapter 7 bankruptcy.

Certain types of debts cannot be cleared through Chapter 7 bankruptcy including school loans, child support, alimony, taxes, and personal injury damages.

Call today to speak to a bankruptcy attorney to determine whether you are eligible for Chapter 7 relief, what your possible benefits of relief under Chapter 7 bankruptcy would be, and what exemptions and/or reaffirmations would enable you to keep important assets.