Chapter 7 Bankruptcy Attorneys Offer You a Fresh Start

Secured debts is debt that is backed (or secured) by collateral.   For instance, you obtain a mortgage loan by putting up the house as collateral; if you don’t pay off the debt, the house can be taken back as a means of repaying the loan (also referred to as a foreclosure). The home loan is secured by the house. By contrast, unsecured debts such as most credit cards do not have collateral that creditors can seize if the debt goes unpaid. Most credit cards, medical debts, utility debts and personal loans fall under the category of unsecured debt.

Among the debts Chapter 7 can discharge are:

• Credit card debt
• Personal loans
• Medical bills
• Other past-due bills

Student loans are in the unsecured debt category but they are challenging to discharge and a person who requests a discharge of student loans must follow additional steps if they qualify for a discharge of student loans. However, the other forms of debt in this category can be eliminated by filing for Chapter 7.  An added bonus? The moment you file for bankruptcy, creditors must cease their attempts to collect. In other words, filing equals no more hounding, no more garnishments, no more calls or letters.

There are different forms of bankruptcy because not everyone will have the same kind of debt, income level, or situation. Speak with one of our attorneys to see if Chapter 7 is best suited for you. Chapter 7 takes into consideration income based on a median household average. You will have to pass a “means test,” which is determined by your income, expenses, and debts. A seasoned attorney can explain how you may qualify for a Chapter 7 even if you are above the median household income level. We will help you navigate the bankruptcy process and avoid certain pitfalls, Perez Law Group will guide you through the process of gathering records, qualifying for the means test, filing the paperwork, and attending the 341(a) meeting of creditors.