What is Chapter 7 Bankruptcy

Filing a Chapter 7 Bankruptcy is an option we present to clients who face overwhelming debt and need help securing a more financially stable future. It is a process whereby qualified debts are discharged and, immediately upon filing, bothersome collection calls and garnishments stop. If you, like our clients, need a way of freeing yourself from the shackles of debt and relentless collection calls, a Chapter 7 Bankruptcy can be a quick and painless method of doing so.

How quick? Typically, a Chapter 7 Bankruptcy takes three months from filing to discharge. After meeting for a free consultation to determine that Chapter 7 Bankruptcy is the right avenue to pursue your debt relief, we gather essential documents from you and create a petition to file with the court. Once the case is submitted, you will attend a meeting administered by a trustee whose role is to ask you questions and administer the bankruptcy estate. In a typical case, this is the only hearing that a client will need to attend. In fact, most clients are never in front of a judge, nor do they step foot in a courtroom. You may visit the Chapter 7 Bankruptcy Basics provided by the US Courts for more information.

How painless? While this may seem like a lot of steps, the reality of is much simpler than it looks, and your Chapter 7 lawyer will handle the brunt of the work to ensure what would be a challenging process is as worry-free as possible.

So, what is a Chapter 7 Bankruptcy? The answer is simple: a chance at a fresh financial start.

The Difference Between Chapter 7 and Chapter 13

There are three significant differences between a Chapter 7 and a Chapter 13 Bankruptcy. First, Chapter 7 does not typically require that you pay the money back, unlike a Chapter 13, which requires that you make payments throughout the course of a payment plan. Second, Chapter 7 lasts three months while a Chapter 13 can last up to five years. Third, certain debts are treated differently in Chapter 7 than in Chapter 13.

Let’s break that down a little.

Whereas a Chapter 13 filing requires you to pay back a reduced amount of debt over a three to five year period, Chapter 7 Bankruptcy allows your obligation to be discharged with no payments required after only three months. Though this kind of bankruptcy is termed “liquidation bankruptcy,” rarely do clients lose their personal belongings as, often, the items they possess will not sell for enough money to pay the debts or are exempt from selling in the first place. Furthermore, you can protect certain assets in a Chapter 7 filing, and the process tends to be the simplest and quickest way of fully recovering from the financial crisis you might be facing.

Why is it the quickest and simplest? Rather than relying off on a three to a five-year payment plan, the only thing standing between you and the discharge of your debt is paperwork, a meeting of the trustee, and about a three month time period.

Finally, depending on what debts you owe, it may be more beneficial to choose Chapter 7 versus Chapter 13. This is because certain debts are treated differently between the two, and you may have more dischargeable debt or more debt that would be better handled throughout the course of a payment plan. The bottom line is the best way to determine whether Chapter 7 or 13 will best suit your needs is to consult an attorney.

Still not sure about the differences or how they apply to your case? With a free consultation, our attorneys will be able to ensure you that the path you choose is the right one so that you need not worry if you are on the right road to a fresh start.

Is Chapter 7 Bankruptcy Right for You?

While we will certainly consider all paths to a fresh start best for you, a Chapter 7 Bankruptcy may be the right fit if you are looking for a way out of credit card, medical bill, or most unsecured debts. If there’s a stack of unpaid bills gathering dust in the corner and you simply do not have the disposable income to pay them, or if you find yourself dodging collector calls and hiding from the truth of the debt building up behind you, then it might be time to consider a Chapter 7.

Although a Chapter 7 Bankruptcy does not allow you to discharge child support, criminal fines, or student loans (in most cases), the amount that gets discharged is done tax-free—as opposed to debt settlement avenues that will label any mitigated debt from negotiation as income. It will also help to expedite you on the road to financial recovery as Chapter 7 only takes three months from the time of filing to discharge.

At Hoglund Law Bankruptcy, we understand that no one sets out in life to file for bankruptcy—and that because of the negative stigmatization of the term, people forget that bankruptcy is a tool to help you succeed, not another weight to mark you as a failure. If the only thing holding you back from filing is the fear of how others will label you, then you need to consider whether being buried under medical and credit card bills is worth avoiding the ladder that will let you climb above it all.

However, the best way to determine whether a Chapter 7 Bankruptcy is a good fit is to meet with a Chapter 7 Bankruptcy lawyer who can assist you in finding a solution tailored to your needs. During a free consultation with an experienced Hoglund Law attorney, we will look at the assets you possess, review a budget with you, and evaluate your debts. This review will allow the attorney to have all relevant information necessary to advise you on the right path through the financial troubles facing you.

How We Can Help

Bankruptcy law is a continually changing area of law that can be hard for those unfamiliar with it to grasp. We have 30 plus years practicing bankruptcy law and boast over 120 years combined bankruptcy experience, meaning you can rest assured that you will be armed with some of the best legal advice accessible.

Your first step? Coming into one of our many offices to meet with a trusted attorney during a free 30-45 minute consultation. During the consult, we will help you determine what path forward meets your specific needs and financial goals, while also answering any of your questions so that you see the full context of how our office will free you from debt.

But we won’t stop there. We assist not only in gathering your documents and creating a petition to file but also go above and beyond most other firms by providing you with a credit score rebuilding program, credit report screening, and support after discharge. We keep in contact throughout the process of recovering from bankruptcy to assure that you will never need to file again. It’s no wonder over 30,000 clients have come to us for support in their time of need.

So, if you are looking for a firm that you can trust—who values your recovery and financial goals above all else— we are prepared to assist you immediately. We offer not only a free consultation but also zero dollar down bankruptcy assistance.
To get your questions answered, and put the shadow of debt in the distant past, schedule your consultation today.