Chapter 7 is sometimes called a "liquidation bankruptcy." A common misconception about Chapter 7 is that you will lose your home, cars and other property if you file. Most Chapter 7 cases are classified as "no asset" cases. That means that there are no assets with sufficient equity for the bankruptcy trustee to sell for the benefit of unsecured creditors. Bankruptcy trustees are responsible for selling property only when it will generate sufficient money for the unsecured creditors in your case. To determine whether there is equity for the creditors, the trustee must take the value of the assets and subtract the secured debt owed on the assets, the cost required to sell the assets, and the costs of administration. If, after making all of these deductions, there is little or no equity left for the unsecured creditors, the trustee will close the case as a "no asset" case. That means you keep your house, your cars, and other property and continue paying for them as if you had never filed bankruptcy. In your initial consultation, the attorneys at Dionne & Dionne will go over all of your assets and debts and tell you whether you are at risk of losing any property by filing a Chapter 7 case.
One of the advantages of a Chapter 7 case is the speed with which you get your discharge. Every Chapter 7 debtor will go to a first meeting of creditors which is conducted by the trustee. One of our lawyers will attend the meeting with you. Most debtors never meet the bankruptcy judge and never have to appear in Court. The vast majority of Chapter 7 debtors receive their discharge within 120 days of filing. Once the discharge is entered, you can begin to rebuild your credit.
The filing of a Chapter 7 case will stop your creditors from harassing you. You will finally be able to stop worrying about the phone ringing. It will also immediately stop all lawsuits and garnishments. The entry of your discharge will wipe out most credit card debt, medical bills, personal loans, and other unsecured debt. It will also wipe out income taxes that are due on income returns filed more than 3 years ago. Some debts do survive Chapter 7. Examples of debts that you will continue to owe after the filing of a Chapter 7 include child support and alimony obligations, student loan debts, taxes less than 3 years old, debts incurred as the result of fraud, embezzlement, willful and malicious injuries, and debts owed for restitution.
If you are in need of a fresh start and ready to take charge of your financial life, call the attorneys at Dionne & Dionne. They will meet with you and provide you with a free initial consultation. The attorneys will take the time to get to know you and your situation. They will help you develop a plan that will provide you with the relief you need.
Please call us today to set up your free initial consultation.
Dionne & Dionne
6726 Old Greensboro Road, Suite A
Tuscaloosa, AL 35405-5979
Phone: (205) 349-5911
Inside 205 Area Code Toll Free: 1-800-BANKRUPT (1-800-226-5787)
Nationwide Toll Free: 1-888-263-1525
Fax: (205) 409-0294
E-mail