What is Chapter 7 Bankruptcy? Chapter 7 bankruptcy is the process you go through to clear all of your unsecured debt. Unsecured debt is a loan that is not backed by an underlying asset, like a car or a house. Examples are credit card bills, medical bills, utility bills, repossessions, and foreclosures.
In order to qualify for chapter 7 you can’t be making over a certain amount and you can’t own too many assets. At our free consultation we will be able to determine whether you will qualify for chapter 7 or not. The majority of our clients qualify for chapter 7 and get a brand new fresh start. If you don’t qualify for chapter 7 you would need to file a chapter 13 which is more like a payment plan with the court.
What is the procedure for filing Chapter 7 Bankruptcy?
First we meet for a free consultation. At the consultation we will discuss if bankruptcy is a good option for you. If we determine that you qualify for Chapter 7 and that bankruptcy is the best option for you, we will give you some forms to fill out and tell you what documents are needed from you. Once you fill out the forms and bring in the required documents, we can have your bankruptcy filed within a week or two. You will also need to attend a meeting of creditors approximately 1 month after we file the bankruptcy. After that meeting, we wait another 60 to 70 days and you will receive the discharge papers in the mail.
To qualify for chapter 7, you can’t be making over a certain amount and you can’t have too many assets. At our free consultation, we will be able to determine if you will qualify for chapter 7. The majority of our clients qualify for chapter 7 and get a brand new fresh start. If you don’t qualify for chapter 7, you would need to file a chapter 13 which is like a payment plan with the court.
How Can Filing for Chapter 7 Help Me?
As soon as we file for bankruptcy something called an "automatic stay" is put into effect. This means that no creditor is allowed to contact you anymore. Finally, the annoying and harassing phone calls will stop. Also, creditors can’t sue you or garnish any of your wages. The “automatic stay” is put into effect automatically once we file.
Chapter 7 completely gets rid of your credit card debt, medical bills, utility bills, civil judgments, and any other unsecured debt you have. Chapter 7 also automatically stops utility shut offs.
By filing for Chapter 7, you can surrender your car or house in the bankruptcy and not have to pay the remaining debt.
If you want to keep your car you may be able to negotiate a better payment plan.
If a creditor has garnished more than $600 from you within 90 days of filing the bankruptcy, you can usually get that money back.
What does chapter 7 NOT get rid of?
Most tax debts
Most student loans
Child support and alimony
court fines & criminal restitution
Personal injury cases that were caused by drunk driving or driving under the influence of drugs
Any debt that was incurred through the act of fraud
Trying to decide if bankruptcy is right for you?
The Adler Law Firm PLLC in Detroit, Michigan offers FREE consultations to help people in need decide if bankruptcy is right for them. If you’re even considering bankruptcy in or near Detroit, MI, The Adler Law Firm can help show you the various options, such as Chapter 7 bankruptcy and Chapter 13 bankruptcy, and help you navigate the complexities and ramifications of each. We also offer some of the most affordable prices in the Detroit Metro area without compromising on quality. Contact Us Today!
When it comes to financial trouble, choosing a Michigan bankruptcy lawyer with the knowledge and experience necessary to make a difference in your future is the first step on a road to positive change.
At Adler Law Firm PLLC, we understand that filing for bankruptcy can be a very stressful and daunting experience for you. That's why we try to make filing for bankruptcy as easy and quick as possible at a very affordable rate. You can be sure that as soon as you speak with our bankruptcy attorney, you will know that you are in good hands and you can put that stress behind you for good.
We file bankruptcy filing services for the greater Detroit area, including Southfield, Warren, Royal Oak, and Farmington Hills.
Visit us today at
Find us on Facebook at
0 Comments