- Stop garnishments immediately.
- Affordable payment plan for clients
- Allows you to remove judgment liens
- Case lasts anywhere from 4-6 months.
- Does not help you restructure mortgage arrears
- Allow you to “redeem” or reaffirm on secured debt
- Reported on your credit 10 years from date of filing.
- May be able to discharge tax debt older than 3 years
- Does not discharge child support or alimony arrears
- Married couples can either file together or just one person can file.
Deciding which chapter of bankruptcy to file can be confusing. Chapter 7 bankruptcy forces you to liquidate your assets that are not protected by exemptions and repay creditors. This means that if you have too much equity in your home that the Chapter 7 Trustee will sell the home and use the proceeds to pay your creditors. You may be OK with that but most people want to keep their homes. Typically, the entire Chapter 7 process is completed within four to six months.
Chapter 7 cases do not allow you to remove junior liens or to “cram down” secured loans on cars and furniture. You also need to remember that you have to qualify for Chapter 7 bankruptcy and your current income and past six months of income have to be reviewed.