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Everything You Need to Know About Chapter 7 Bankruptcy

Are you facing harassment from creditors? Are you facing creditor lawsuits? If so, the creditor can get a judgment against you, garnish your wages, place a levy on your bank account, or place a lien on your home. These are all outcomes that are best avoided. One way to avoid these outcomes is to file for Chapter 7 bankruptcy. A Chapter 7 bankruptcy can discharge all debts that you owe. You may have to sell off some property to repay your creditors. In most cases, however, you can protect the majority of your property from liquidation. The Indiana bankruptcy attorney, Chris Arrington, will describe the Chapter 7 bankruptcy process and how it works.

How Does Chapter 7 Bankruptcy Work?

If you are behind on your bills and struggling to repay your creditors, Chapter 7 bankruptcy offers you a way to reset your finances and start fresh. In Chapter 7 bankruptcy, you can discharge certain (unsecured) debts such as credit card payments, personal loans, and medical bills. In other words, once the bankruptcy is complete, you will no longer owe this money.

Once you file for a Chapter 7 bankruptcy, the court issues an automatic stay against all adverse creditor actions. If you are being sued, the lawsuit against you must stop and wait until the bankruptcy is processed. Debt collectors will no longer be able to contact you. Chapter 7 can stop wage garnishments as well. 

Once the Chapter 7 process is underway, a trustee will review your finances and personal assets. The trustee will determine whether or not you have any non-protected property that you can sell to repay your creditors. In most cases, they don’t find anything. You are allowed to keep exempt property and property that you tag with your exemptions. Your bankruptcy attorney can help you determine what property you want to protect and use your exemptions to protect this property. 

After the bankruptcy process is complete, your unsecured debts will be completely discharged. This means that you will no longer have those debts hanging over your head. 

What are my other options?

In some cases, it may be best to file under Chapter 13 bankruptcy. While you don’t have to liquidate your assets to repay creditors, you do have to present the court with a repayment plan that repays some of your secured and unsecured debts. If you are interested in managing a mortgage debt, Chapter 13 might be the best option to keep your home. Your bankruptcy attorney can help determine which chapter of bankruptcy is right for you.

Contact a Chapter 7 Bankruptcy Attorney Today

Chris Arrington helps Indiana residents deal with unmanageable debt. If you are facing creditor lawsuits, being harassed by creditors, or otherwise cannot make payments on outstanding debt, bankruptcy may be your only option for financial solvency. Our attorneys will guide you through the process and ensure a successful outcome. Call today to learn more. 


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