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Chapter 7 Bankruptcy Basics

Chapter 7 Bankruptcy Basics

Chapter 7 Bankruptcy Basics

A Chapter 7 bankruptcy is the most common type of bankruptcy and is what most people think about when they hear the word “bankruptcy.”

A Chapter 7 bankruptcy is characterized by the following features:

  • Most debts are eliminated

  • No payment plan

  • Most, if not all, property can be retained

  • Some property may be sold to pay creditors (very rare)

In a Chapter 7 bankruptcy, you are allowed to retain assets up to a certain dollar amount. These are called “exemptions.”

Anything over that amount must be surrendered to the Chapter 7 bankruptcy trustee, the person who oversees the bankruptcy case. He or she will sell the nonexempt property and divide the proceeds among the creditors.

The good thing about a Chapter 7 bankruptcy is that it only takes approximately three-and-a-half months from start to finish, and once concluded, all of your dischargeable debts will be wiped out leaving you with a clean financial slate. You will then be able to more effectively rebuild your credit. Filing for bankruptcy can actually help your credit!

For people who meet the income requirements, this is often the best course of action, as compared to a Chapter 13 bankruptcy that requires a payment plan over a course of 3-5 years.

Atlantis Law has experienced bankruptcy lawyers to assist you with the filing process. We will ensure that your assets will be protected so that you will not lose anything. If there are certain assets you cannot protect, we will discuss other options to bankruptcy as well. Contact us today to schedule your free initial consultation.

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