Chapter 7 bankruptcy is filed when a Debtor cannot afford to make a meaningful payback to Creditors. Most unsecured debts are discharged (wiped out). Secured debts, such as cars, houses, and furniture can continued to be paid directly by the Debtor if he or she desires to keep the collateral.
Chapter 7 FAQs
What Property can I keep?
The answer is, probably a lot, but there are many Bankruptcy exemptions and they differ from state to state. Only once we have a complete list of all your assets can we give you an exact answer.
Who can file a Chapter 7 Bankruptcy?
You must not have been granted a Chapter 7 discharge within the last 8 years or completed a Chapter 13 plan within the last six years with a repayment of less than 70% to unsecured creditors.
What debts are wiped out?
Generally speaking, all debts are eliminated, except for the following:
- Debts which have are determined by the Bankruptcy Court to be non-dischargeable as the result of debts created through false pretenses or misrepresentations or for money or property obtained by fraud or for damages arising for willful and malicious injury to property;
- Certain taxes;
- Certain Debts which you fail to list on the schedules;
Debts owed to a spouse, former spouse, or child for alimony, maintenance and support; or incurred as the result of a property settlement agreement;
- Debts for fines, penalties, restitution or forfeitures payable to a governmental unit or as the result of a conviction in a criminal case;
- Debts because of damages, injuries or death resulting from driving while intoxicated;
- Educational or student loans.
Can I keep my home and personal property?
In most cases, you keep your property. However, only after providing your attorney with a list of all your Assets can this question be answered.