A Chapter 7 bankruptcy case is a liquidation case, sometimes referred to as straight bankruptcy. Chapter 7 is a very popular type of bankruptcy proceeding for individuals. A Chapter 7 case may be an “asset case” or a “no-asset case”. In an asset case, a debtor’s nonexempt assets are converted to cash and disbursed to creditors according to certain priorities under the U.S. Bankruptcy Code. In a no-asset, none of the debtor’s assets are available to be liquidated or sold for the benefit of creditors, because they are exempt or encumbered by liens.
One of the primary goals of filing a Chapter 7 is to obtain a discharge. It is important to consult with an attorney before filing your Chapter 7 so that your attorney can review your case for any bars to discharge which are listed in Section 727(a) of the Code. A common bar to discharge is when the debtor has received a bankruptcy discharge in a case filed within the past eight years and/or when the debtor has acted with the intent to hinder, delay, or defraud a creditor. If a debtor is not barred from discharge, after the period for objection has passed, the financial management course certificate has been filed, the filing fee has been paid in full, and all required schedules and statements have been filed, the debtor receives a discharge which eliminates the debtor’s personal responsibility to pay most debts, including credit card debts, most civil judgments, personal loans and medical debt.
When filing for Chapter, be prepared to disclose the names and addresses of your creditors, the nature of each debt, information pertaining to your income, a list of your household’s monthly expenses, and information regarding your assets.
If Chapter 7 is the best option for you, you will work directly with a bankruptcy attorney to create the necessary documents and formulate the best plan of action in your case. We have the experience to assess your unique circumstances and determine the best course of action for you.
Here are a few additional aspects of Chapter 7:
- Stops collections and garnishment with the benefit of the automatic stay and the discharge under the Code, if applicable.
- Recover money that has been garnished in some situations, generally the funds garnished in the 90 days prior to filing must be greater than $600.00.
- Avoid judicial liens on your real estate when the lien is preferential and/or impairs and exemption.
- Avoid non-purchase money liens against household goods and furnishings in some situations.
- Discharge tax debt under some circumstances.
Payoff your car at “replacement value” through a process called “redemption”.
You will need to speak to an attorney to find out if you are eligible for a Chapter 7 bankruptcy and whether or not you can take advantage of some of the tools mentioned above. It is essential to have an experienced bankruptcy attorney help you decide what type of bankruptcy to file and to navigate the process. We will work closely with you to determine the best action for you to take.
References to the U.S. Bankruptcy Code and Code are found at Title 11 of the United States Code, and the relief discussed herein may be afforded under the U.S. Bankruptcy Code, including §§ 362, 506, 522, 523, 547, 722, 727.
GET HELP IN YOUR CASE
Send Us a Message
Attorney Shawn W. Carter is responsible for the content of this website. The information on this website is provided for educational and advertising purposes for the public. The information is not intended as, and should not be construed as legal advice. The use of the information provided in these pages does not form any contractual or other forms of attorney-client relationship with the reader or user of the information. Please consult with an attorney regarding your particular factual and legal circumstances. An attorney-client relationship cannot be created before the firm has accepted the representation and confirmed the representation in writing.
Please do not send us any confidential information about any matter that may involve you unless we have agreed that we will be your lawyer and represent your interests. The best way for you to initiate a possible representation is to contact the office so that we can explain the steps that must be followed. When you enter into a retainer agreement from us, you will be our client, and we may then exchange information freely.
Nothing on this website is intended to state or imply that the quality of the legal services to be performed by Shawn W. Carter is better than the quality of legal services performed by other lawyers. You must be a resident of, or authorized to do business in, the State of Maryland in order to use the legal services offered by this website and the law firm.
We are a federally designated debt relief agency. We help people file for bankruptcy under the Bankruptcy Code. This statement is required by 11 U.S.C. § 528(a)(4), however, it does not state the full range of services available from this firm.
Discrimination is Against the law. We comply with applicable federal civil rights laws and do not discriminate on the basis of race, color, national origin, age, disability, or sex, including sex stereotypes and gender identity. We do not exclude people or treat them differently because of their race, color, national origin, age, disability, or sex.
Note: each case is different and the past record of a lawyer is no assurance that the lawyer will be successful in reaching a favorable result in any future case.