What is a Chapter 7 Bankruptcy and what are the Benefits?
In a Chapter 7 Bankruptcy, all of your non-exempt assets are liquidated and the distributions of the proceeds are paid to your creditors. Most of your unsecured debt will be eliminated. Debtors typically file a Chapter 7 Bankruptcy to wipe out all unsecured debt they have accumulated. This includes credit card debts, lines of credits, pay day loan debt, medical bills, mortgage foreclosure, deficiencies, repossessions, lawsuits and other unsecured loans. This is usually a quicker process than any other form of bankruptcy and takes about six months to complete. This is the preferred process for those with little to no assets, or only exempt assets, and low to moderate income. This type of bankruptcy is called “liquidation.”
Most of the debt mentioned above is discharged, meaning creditors no longer have the legal right to come after you ever again for the payment of the debts and the creditors are wiped out.
In a Chapter 7 bankruptcy, Van and Associates would collect all your documentation and review for accuracy and then file a petition for bankruptcy and order an automatic stay and stop all collection activity. That means we will stop creditors from pursuing you for your unsecured debt.
To learn more about the Chapter 7 Bankruptcy process, click here!
Please feel free to contact us today so that we may discuss the options that are available to you.
Van and Associates Law Firm at 702-529-1011