One of the main purposes of bankruptcy law is to give a person who is hopelessly burdened with debt a fresh start by wiping out his or her debts. Chapter 7 bankruptcy, generally termed as “liquidation” bankruptcy, cancels most individual debts. Most people are able to discharge their credit card debts, personal loans, overdraft lines of credit, medical and dental bills, and certain taxes.
When you file for chapter 7 bankruptcy you can keep all your possession that are considered exempt. These include but are not limited to:
- A home you live in with equity of up to $50,000
- Bank accounts with a total value of up to $2,500
- Automobiles with equity of up to $2,400
- Pension plans, IRAs, 401k, 403b, and other employer-sponsored retirement accounts
- Household goods and furnishings with a value of up to $5,000
- Clothing and jewelry with a value of up to $5,000
Overall, the chapter 7 bankruptcy process takes from four to six months. An attorney will first conduct a free interview with you either in person or by telephone to assess your case. After the interview, the attorney will prepare a petition which will be filed with the court. About a month after the petition is filed you will have a brief meeting with a trusteee. About two month after the meeting, you will be eligible to receive a discharge of your debts.
We have substantial experience helping people in their time of need. Contact us today for a free consultation to find out if you qualify.
Find out more about bankruptcy:
Bankruptcy and Your Home
How Bankruptcy Impacts your Credit
The Automatic Stay