Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy remains a valuable financial tool for people overwhelmed by debt. At our Greenville, North Carolina, law firm, Cannon Law Offices, PLLC, our attorney has been helping people with Chapter 7 bankruptcies since 1983. If you are facing repossession, foreclosure or harassing debt collection efforts, we can help.

Chapter 7 bankruptcy is also known as a liquidation bankruptcy, because nonexempt assets are sold, or liquidated, to pay the debtor's creditors a percentage of what is owed. Not everyone is eligible to file a Chapter 7 bankruptcy. Our attorney will advise you about the means test that determines if a person meets the requirements and answer all your questions about bankruptcy.

Exempt Assets

Exempt assets include a certain amount of value in your house and car and things you need to make a living, such as the tools of your trade. Depending on how much equity you have in your house and car, you may be able to keep them.

Unsecured Debts

Unsecured debts such as credit cards balances, medical bills, bank loans, store loans and other types of debts can be discharged. The bankruptcy trustee will determine the total amount of your debt and calculate the value of your nonexempt assets. Many clients who file Chapter 7 bankruptcy have few assets, and are able to discharge most of their debts and start again.

Limitations Of Chapter 7

Our law firm advises clients about the downside of Chapter 7:

  • You must attend credit counseling and money management classes before your debts can be discharged.
  • You cannot have your debts discharged through Chapter 7 bankruptcy again until eight years have passed since the previous bankruptcy filing.
  • You cannot discharge debts such as student loans, child support or most taxes.

Benefits Of Chapter 7

Our attorney discusses the benefits of Chapter 7:

  • You will be protected from harassing phone calls, wage garnishment and creditor harassment by the automatic stay.
  • You will be able to take out loans after a few months or years have passed, albeit at a high interest rate, but you can start rebuilding your credit.
  • You will no longer experience the stress of trying to make payments when you have no resources.

Talk To Our Attorney

Make a fresh start. For a free initial consultation with our experienced bankruptcy lawyer, contact Cannon Law Offices, PLLC. Call 252-558-1834 to discuss your situation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.