Tirella Law Firm - What You Need To Know About Chapter 7 Bankruptcy

1. WHAT YOU NEED TO KNOW ABOUT CHAPTER 7 BANKRUPTCY Financial misfortune can fall upon anyone, at any time. In these days of economic uncertainty, people find themselves buried in medical bills, credit cards, and car loans they can no longer afford. Often, collection agencies will garnish your wages and leave you without enough money to even pay your rent or mortgage. At other times, you might feel so crushed by the harassment of creditor phone calls, process servers, and lawsuits that you don’t know what to do or where to turn. Thankfully, people have the legal option of filing a Bankruptcy. While there are multiple chapters of bankruptcy available to most individuals and couples, the most efficient, inexpensive and often beneficial is the Chapter 7 bankruptcy. Filing a Chapter 7 best suits people who have too much unsecured debt—like credit cards, payday loans, personal lines of credit, debts for repoed cars, broken apartment leases and medical bills. For homeowners behind on their mortgages, a Chapter 13 is the best option. For now, let’s focus on some nuts-and-bolts aspects of the Chapter 7 bankruptcy. Eligibility for Chapter 7 Bankruptcy Filing Chapter 7 often seems like a miracle to many clients who had no way out of their debts and were facing impending wage garnishment, bank account attachment, lawsuits and endless creditor harassment. To qualify for a Chapter 7, an individual or couple must not have filed a prior Chapter 7 within 8 years and one day of filing another Chapter 7 case. There is a limit to income an individual or couple may earn in the six month period before filing a Chapter 7 petition. However, this limit is rarely an issue and involves a complex computation of income, expenses, and number of dependents in the household. Businesses can also apply for a bankruptcy discharge under the purview of chapter 7. However, this discharge usually means that the firm is closed, the trustee liquidates assets and uses the recouped amount to repay the creditors. Immediate Protection From Your Creditors: The Automatic Stay Once a Chapter 7 case is filed, a case number is generated and a powerful Federal rule is triggered. That rule is called the Automatic Stay. The Automatic Stay forbids any creditor or entity you owe money to from garnishing wages, contacting you, communicating with you or harassing you in any way. This rule even applies to the IRS and other taxing authorities. The rule is very important as it provides immediate relief and much needed breathing room for those who file a Chapter 7 bankruptcy case. What Debts Can Be Erased In Chapter 7 Bankruptcy? The terms of this chapter can typically cancel the following forms of debt: ●Medical debt ●Debts from vehicles and repossessed vehicles ●Personal loans ●Credit card debt

2. ●Payday loans ●Unpaid utility bills ●Taxes (Special rules apply—please consult our attorney for more details) ●Unwanted home mortgages ●Debts from residential and commercial apartment leases ●Debts incurred from overpayment of Unemployment Compensation ●Debts from highway tolls ●Timeshare debts ●Bank Account Overdrafts Chapter 7 rules can help you cancel these dischargeable loans in their entirety. However, these rules cannot discharge your responsibilities for alimony and or child support. Student Loans have recently been ruled as dischargeable in a landmark case from the District of New York; however, this requires the triggering of an “adversary proceeding” and must withstand the scrutiny of a Federal Bankruptcy Judge. Can I Keep My Vehicle and Other Property In Chapter 7 Bankruptcy? The generous exemption laws provided by Colorado allow people to keep vehicles, homes, and generally all categories of personal belongings within specific limits. Losing property, when working with a seasoned and skilled lawyer is very seldom an issue. A sound and experienced Bankruptcy Lawyer is needed to ensure you do not lose any asset in the process of Chapter 7 Bankruptcy. Call our attorney, Adam A. Tirella, who has filed thousands of cases and has literally helped people erase millions of dollars of consumer debt while keeping their property for more information.