We understand that you may be anxious to get out of debt and start over, but our experienced bankruptcy attorneys will make sure you have the information you need to make the best decision for you. We will help you understand your options and the consequences of each choice. If Chapter 7 is the right choice for you, we will walk you through each step and address all of your questions and concerns. Price & Price Law is a small family firm with over 25 years of experience in bankruptcy law. We take the time with each client to help you make the right choice for your financial freedom.
What Is Chapter 7 Bankruptcy?
Also known as “straight” or “liquidation” bankruptcy, the law regarding this form of bankruptcy is contained in Chapter 7 of the Federal Bankruptcy Code, thus the name. Under this plan, you do not enter into an agreement to repay your creditors. Instead, much of your debt is simply cancelled. If you have any nonexempt assets, they may be sold or liquidated to repay some of the debt. Nonexempt assets may include cash, investments, second homes, second cars, family heirlooms, collectibles, and musical instruments.
It is important to be aware that you may lose property when you file for Chapter 7, but our lawyers will be straight with you from the beginning about the cost and consequences of this type of filing.
Eligibility for Chapter 7
In order to be eligible to file Chapter 7, your income and assets must fall below a certain value and you must not have filed for bankruptcy over the last six to eight years. In your initial meeting with Billy Price, we will determine your eligibility. If your assets and income exceed the allowance, you may consider filing Chapter 13. Once we have determined that you are eligible to file Chapter 7, we will immediately take the following steps:
- File to activate the automatic stay. We will file for Chapter 7 bankruptcy promptly, which will put into effect an automatic stay. This immediately stops most creditors from trying to collect what you owe them. Creditors will not be able to garnish your wages, access your bank account, take your car or your house, or take any other measures against you. This is a temporary measure, but will provide you with some relief.
- Hold a creditors’ meeting. We will contact each creditor after the filing and set up a creditors’ meeting. You will meet with a court-appointed bankruptcy trustee to discuss claims from various creditors. You will be sworn in and asked questions about your finances. This will likely be your only required visit to the courthouse.
- Discharge your debt. The bankruptcy trustee will collect and liquidate all nonexempt property and distribute the value among your creditors in exchange for a full discharge of your debt.
There are certain debts and financial obligations that cannot be discharged through bankruptcy. Those include the following:
- Child support payments
- Tax debt
- Student loans
- Other non-dischargeable debt as determined by the court
When you work with Billy and Megan, you can rest assured that you will not encounter any surprises along the way as you go through the bankruptcy process. We will explain every step and make sure you understand what will happen.
Chapter 7 May Be the Fresh Start You Need
From start to finish, a Chapter 7 bankruptcy filing should take about four to six months, but with the automatic stay in place, you will get almost immediate relief from creditor harassment.
We understand that life events—like the loss of a spouse or a child, a debilitating illness or injury, or divorce—can cause unexpected financial hardship. We also understand that sometimes the desire to provide a comfortable life for your family can lead to debts that you just can’t pay off. At Price & Price Law, we don’t judge our clients for being in debt. We are truly dedicated to helping them find a way out to get a fresh start. If you are looking for a solution to your financial difficulties, schedule a free initial consultation with us. We will explain your options and help you make a sound decision for your family and your future. Call today at 214-974-3390 or connect with us through the link on this page.