Filing For Bankruptcy Using Chapter 7 Bankruptcy

  • Debt Attorney

Debts That Can Be Cleared With Chapter 7 Bankruptcy

The main benefit of filing for bankruptcy using Chapter 7 is to be relieved of existing debts. Also known as liquidation bankruptcy, Chapter 7 provides the means to get the debts discharged.

Here are the debts that can be cleared using Chapter 7

  • Store cards
  • overdraft of checking accounts
  • Credit cards
  • Certain tax debts
  • Personal Loans
  • Parking tickets
  • Social Security and unemployment related overpayments
  • Medical bills (inclusive of dental)

During a Chapter 7 bankruptcy case, the trustee is entitled to take the control and possession of any property that is not exempt. Hence the debtor needs to understand the asset types that can be exempted in a Chapter 7 bankruptcy filing case.

  • Any clothing or jewellery that is up to the value of $3600
  • Homes that have total equity up to $33,000
  • Household furniture of value up to $3000
  • Bank accounts of value up to $400
  • Automobile possessions with total equity value up to $3400 – this value is higher for a married couple when they file for bankruptcy
  • All retirement accounts from the current or previous employer
  • Personal property that amounts to $2000 (this value can go up to $9000 if the debtor doesn’t own a home)

Depending on the state that the debtor lives in, the value of every asset type can also vary in the above in a Chapter 7 case for the property exemption. Let your queries related to your location and its specific regulations, be addressed through you search for the ‘best bank attorney near me’. A law firm possesses attorneys to clarify such ambiguities.

There is also a list of debts which cannot be discharged in Chapter 7 bankruptcy and that one needs to be aware of –

  • Student loans
  • Most of the taxes
  • Debts obtained to treat personal injuries that had been caused by driving while drunk
  • All fines that have been ordered by court and amounts spent for criminal restitution
  • Child Support and Alimony
  • Debts that had been obtained by fraud/ deception

For more clarity and support with discharging of debts in a Chapter 7 bankruptcy case, seek guidance from the Recovery Law Group. They have diversified clients and have garnered enough experience to handle the Chapter 7 bankruptcy scenarios and work with the debtors for the discharge of their debts. A debtor’s search for their bank attorney, Los Angeles ends with Recovery Law Group who serve locations such as LA and Dallas.