Eliminating Debts With Chapter 7 Bankruptcy
Are you swamped by debts you cannot afford to pay? Are creditors and collection agencies harassing you with constant phone calls or garnishing your hard-earned wages? Are you looking for a way to get out of debt and get a fresh start?
If so, Chapter 7 bankruptcy may be right for you. To learn more, contact me, attorney Thomas McGrath, at my offices in Bellevue. With more than 35 years of legal experience, I help clients throughout the Seattle area achieve real debt relief through the bankruptcy process.
Removing the Burden of Debts You Cannot Afford
A major benefit of Chapter 7 bankruptcy is that it provides a procedure for discharge (elimination) of most types of unsecured debt within a few months of the initial filing. Debts that clients frequently discharge in Chapter 7 include the following:
- Credit card balances
- Medical bills
- Deficiency judgments on repossessed vehicles
- Payday loans
- Eviction judgments
- Utility bills
- Bank account overdrafts
- Unsecured lines of credit
Congress has decided that certain types of debt cannot be discharged in Chapter 7. These include student loans (with some exceptions for hardship situations), child support, alimony, criminal fines and restitution, and personal injury judgments arising from drunk driving accidents.
Also, secured debts such as mortgage and auto loans cannot be discharged unless you are prepared to give up your home or car for liquidation. If you are trying to keep your home or car, Chapter 13 bankruptcy may be a better option.
Carefully Assessing Potential Consequences
Some people who I speak to about Chapter 7 are concerned because they have heard that the process may involve liquidation (selling off) of their assets. However, in the overwhelming majority of Chapter 7 cases in Washington, all of the assets owned by the debtor are exempt from liquidation.
Unless you have significant assets — such as a home or car in which you have a lot of equity — you should be able to get through Chapter 7 without giving up any of your property.
Of course, each case is unique, and I always carefully examine each client's situation to determine, before filing for Chapter 7, whether that client is at risk of being ordered to give up any assets. To get a skilled assessment of your likely Chapter 7 results from an experienced bankruptcy lawyer, contact me today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
