Chapter 7 bankruptcy is the most common form of relief for individuals, families, and businesses. Before petitioning the court for relief under Chapter 7 of the Bankruptcy Code, it is important to understand the benefits and consequences. I help clients understand the issues involved in qualifying for and completing the Chapter 7 process so they can come out on the other side in the best possible position to go forward and create a better financial future for themselves.
There are many powerful benefits to requesting relief under chapter 7. Collection activities such as garnishments, levies, repossessions and foreclosures stop immediately when a case is filed. Long term benefits my clients frequently notice are a decrease in their general stress levels, the ability to handle emergencies, and an increased knowledge of financial planning techniques.
There are, however, some debts that Chapter 7 does not wipe out. Child support obligations, criminal restitution, and a few other narrow categories of debts would still be owed after a Chapter 7 case was completed. Chapter 7 also does not eliminate liens against property.
Most clients go through the Chapter 7 process without losing any property, because the law allows individuals to keep property up to certain limits. A knowledgeable attorney can be essential to making sure people get the fresh start they need while keeping their essential property.