Experienced Chapter 7 Bankruptcy Attorneys In Milwaukee
We are reliable Chapter 7 Bankruptcy Attorneys in Milwaukee, WI that can guide you through these challenging times
What Exactly is Chapter 7 Bankruptcy ?
When a person goes through Chapter 7 bankruptcy, they come out of it without all or at least most of their debts. This is a convenient vehicle for getting a fresh start. A person filing Chapter 7 needs to sell any of his/her/their non-exempt property and the proceeds go to the entity’s creditors. Because of the forced sale of non-exempt property, many people who file this type of bankruptcy do not have many or any assets to sell and therefore can get through this process relatively quickly (months).
Chapter 7 of Title 11 in the U.S. bankruptcy code controls the process of asset liquidation. A trustee is appointed to liquidate nonexempt assets to pay creditors; after the proceeds are exhausted, the remaining debt is discharged. There are eligibility requirements to file Chapter 7, such as the debtor must have had no bankruptcy discharged in the preceding eight years and the applicant must pass a means test.
This is the most common type of bankruptcy partly because a person can relive himself/herself of many debts as opposed to having to repay them.
You may have heard of the terms “liquidation bankruptcy” or “straight bankruptcy”. These are other ways to refer to Chapter 7.
When determining what form you want to file, it is important to consult a bankruptcy attorney like Paul Strouse. He can evaluate your situation and advise you on the pros and cons of each type.
Even though many debts are relieved with this type of bankruptcy, for items like car loans or mortgages, a debtor can enter into a reaffirmation agreement with specific creditors to hold on to certain important assets.
Debts that can be discharged in Chapter 7 includes:
- Credit card debt
- Medical bills
- Personal loan
- Mortgage or automobile loans that you can no longer pay (but you lose possession of)
- Any other form of unsecured debt.
Lastly, anyone who completes Chapters 7 or 13, cannot file again for eight years.