A successful Chapter 7 client qualifies for a Chapter 7 under the income and filing requirements. A chapter 7 client can maintain direct payments to secured creditors or surrender the property to the lender. In a chapter 7, most unsecured debts are discharged. Dischargeable unsecured debts include medical bills, credit card debt and payday loans. Some debts, such as taxes, student loans and child support will not be discharged. Clients will continue to make payments on these debts.
A typical chapter 7 last 3 to 5 months. Most clients complete their chapter 7 cases without making any payments to dischargeable unsecured creditors. Some clients may pay some or all of their unsecured debts if they have non-exempt assets. Non-exempt assets could include a non-homestead house, large amounts of cash or accounts receivable. Non-exempt assets may be sold or liquidated to pay a chapter 7 clients unsecured debts. However clients are required to disclose all assets prior to filing. Because of discloses requirements, we can help you determine whether your property is exempt.
When a chapter 7 is discharged, a client will be current on the secured property the wish to keep because they will have continued making direct payments. Clients will no longer be personally liable on secured property surrendered to the lender. Discharged unsecured debts will be barred from collection by Court Order and discharged Chapter 7 clients will not be liable for payment. This gives chapter 7 clients a fresh start. Call us at 214-974-3390 to learn your options.