WHAT IS CHAPTER 7?
Your Partners in Financial Recovery and Renewal
What is Chapter 7 Bankruptcy?
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Chapter 7 bankruptcy is often referred to as "liquidation bankruptcy." It involves the sale of your non-exempt assets by a bankruptcy trustee. The proceeds are then used to pay off creditors. This option is generally best for individuals with limited income who face large amounts of unsecured debt, like credit card debt or medical bills.
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Benefits of Chapter 7:
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Quick process, typically completed within 4 to 6 months.
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Discharge of most unsecured debts, giving you a clean slate.
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No payment plan required.
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Considerations:
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Potential loss of property not covered by exemptions.
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Impact on your credit score for 10 years.
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Eligibility and Process:
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Must pass a means test comparing your income to the median in your state.
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Complete credit counseling from an approved agency.
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Assets are evaluated for exemption; non-exempt assets are liquidated.
MAKING THE RIGHT CHOICE
Choosing Between Chapter 7 and Chapter 13: Choosing the right type of bankruptcy depends on several factors, including your income, types of debts, and your long-term financial goals.
Doyaga and O'Shea will help you evaluate your situation to determine the best path forward:
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Chapter 7 may be the best solution if you have little disposable income and want to eliminate unsecured debts quickly.
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Chapter 13 might be appropriate if you have valuable assets to protect and a regular income to support a repayment plan.
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Our Commitment: Doyaga and O'Shea are dedicated to providing personalized legal advice tailored to your unique financial situation. We offer a free initial consultation to discuss your options and help you make an informed decision about your financial future.