Chapter 7 bankruptcy is basic straight bankruptcy. Individuals file chapter 7 to get a fresh start financially. Chapter 7 can eliminate many unsecured debts such as credit cards, medical bills, and personal loans. Chapter 7 debtors can keep property up to the amounts of certain statutory property allowances called exemptions. A large number of debtors are able to exempt and keep all of their property. If property is not exempt in chapter 7, a chapter 7 trustee will sell the property to pay creditors. For those eligible and not in need of the unique powers of chapter 13 bankruptcy, chapter 7 is often cheaper and faster.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy eliminates debts, stops debt collectors, and provides people with fresh start for their finances. Chapter 7 is very effective on credit card debt, medical bills, ordinary civil judgments, and other unsecured debts (loans without collateral). Many debtors filing chapter 7 are able to keep all of their property. They do this by using the property allowances provided by the North Carolina statutory exemptions, which offer protections up to a set value for a home, a car, household goods, and other property. Chapter 7 is usually quick, with the process often competed in the course of several months.
Erich Fabricius is our chapter 7 bankruptcy attorney. He can help you plan and prepare for chapter 7, so that you can get the benefits you are entitled to under federal law.
We discuss Chapter 7 Bankruptcy in more detail on the following pages:
Filing Chapter 7 Bankruptcy -
Basics About How Chapter 7 Works