Chapter 7 Bankruptcy Basics

Chapter 7 cases are typically shorter in duration, cheaper in fees/cost, and more helpful for credit rebuilding than chapter 13 or chapter 11 cases.

A chapter 7 generally discharges the following kinds of debt:  

  • credit cards
  • medical bills
  • deficiency balances resulting from the sale of a repossessed car or foreclosed mortgage
  • unsecured personal loans 
  • store accounts
  • trade or vendor debt
  • personal liability resulting from the guarantee of another’s debt
  • certain kinds of tax obligations 

Common debts that are not discharged in chapter 7 include student loans, marital/domestic obligations, certain tax obligations, criminal restitution, debt incurred through fraud, debt incurred by defalcation of fiduciary duty and debts incurred by willful and malicious injury.

There is the potential for the loss of non-exempt assets in chapter 7

How Filing Chapter 7 Bankruptcy Works:

  • A case is filed and immediate protection of many collection activities is granted to the debtor. Creditors are unable to continue most collection activities. 
  • Assets, liabilities, income, expenses, and a description of certain financial events in the debtor’s recent history are all disclosed in detail.  
  • Client attends a 341 Hearing (also called a “Meeting of Creditors”) where a trustee examines the client. An attorney from Sasser Law Firm is present with the client during that examination. 
  • A credit counseling course must be completed prior to the case being filed. Before a case can be closed, a client must watch a financial management video. 

Travis, Philip, Cort on a bench

Why Choose Sasser Law Firm?

  • Competitive, income-based fee structure  
  • Emergency or time-sensitive cases are welcome
  • Free No-obligation consultation

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NOTE: This is an overview of chapter 7 bankruptcy and does not constitute legal advice. If you are considering chapter 7 bankruptcy you should consult with an experienced bankruptcy attorney licensed to practice in your jurisdiction.