The most common form of bankruptcy are those that are filed under chapter 7 of the United States bankruptcy code. Chapter 7 is designed primarily to remove credit cards, medical bills and other unsecured debts like utilities and collections. Taxes and other government debts can also be included in your chapter 7 as long as the bankruptcy requirements regarding those debts are met.
Unlike chapter 13 there is no repayment plan through chapter 7 and therefore limits what can be achieved with regard to secured creditors like home and auto loans. You can keep your assets through chapter 7, but you must maintain timely payments on the loans and any equity must be exempted from your bankruptcy estate.
A thorough examination of your assets and the federal or state bankruptcy exemptions must be conducted prior to opening a chapter 7 bankruptcy. Without a comprehensive evaluation the chapter 7 bankruptcy trustee has the authority and power to sell your non-exempt assets.
We know the law and will be sure to exempt your assets from your bankruptcy case. Our thorough pre-filing intake procedure ensures you and your case are prepared for chapter 7 success.
Chapter 7 Discharge
The purpose of a chapter 7 bankruptcy is to discharge debt and give people a fresh financial start
Once your debts are discharged through chapter 7, the debtor(s) no longer have any obligation or liability for those debts. This includes any tax liability for the removed debts.