Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, a debtor files court documents asking certain unpaid debts to be erased or discharged. A debtor is a person who owes money to another person.
Here, bankruptcy attorneys from ETG Capital Advisors LLC, a company that provides creative credit solutions to companies dealing distressed customers, explain in detail Chapter 7 bankruptcy.
The debtor is allowed to keep some of their income and properties. The property that the debtor is allowed to keep during a bankruptcy, is known as exempt property. The property that a debtor cannot keep is sold to pay off debts.
Most debts are canceled after a Chapter 7 bankruptcy. However, ETG Capital bankruptcy attorneys indicate that the following debts cannot be canceled in a Chapter 7 bankruptcy:
- Child support
- Spousal support
- Most tax debts
- Student loans
- Secured debts
These debts must still be named in bankruptcy documents filed with the court, but cannot be erased.
What to consider before filing for bankruptcy
ETG Capital bankruptcy lawyers warn that filing for bankruptcy is not a good idea for everyone. It is a serious step and you should only file for bankruptcy if you know it will help you. You should speak to an attorney before filing, if possible. You can reach out to ETG Capital bankruptcy lawyers.
ETG Capital bankruptcy attorneys give some reasons in favor of filling for bankruptcy:
- Most debts are discharged (erased), giving you a new start
- Bankruptcy puts an end to wage garnishment and harassment by collection agencies
- Foreclosures and recoveries are suspended and cannot proceed unless the court allows it
- You can end utility terminations, or restore service after paying a reasonable deposit, and then pay only for your current service
- Employers and public agencies cannot retaliate against you for declaring bankruptcy
- If your driver's license was suspended for failure to pay a debt that can be discharged in bankruptcy, you may have your license reinstated.
ETG Capital bankruptcy attorneys give some reasons against filling for bankruptcy:
- Some debts, such as student loans, cannot be discharged (erased)
- Bankruptcy stays on your credit rating for 7 to 10 years
- Getting credit may be more difficult or more expensive
- It can cause tension in relationships with some creditors and co-signers
- You will have to return a property for which you are not paid (Chapter 13 can be used to save some additional property)
- You can only get the Chapter 7 discharge once during an 8-year term
- You can protect your income and property without filing for bankruptcy.
For more information on Chapter 7 bankruptcy reach out to ETG Capital Advisors LLC bankruptcy attorneys and take advantage of their services.
June 17th, 2020