Discharge Debts With Chapter 7 Bankruptcy
Chapter 7 bankruptcy, often referred to as “straight bankruptcy,” offers debt relief benefits to individuals and families facing overwhelming debt related to high credit card balances, personal loans and lines of credit. In addition to discharging most debts, filing for Chapter 7 also immediately ends the harassing calls from bill collectors and threatening letters from creditors and puts an end to foreclosure proceedings. Under the Chapter 7 process, typically all property is protected.
At the Fava Firm, attorney William Fava and his team are committed to providing detailed and helpful advice on Chapter 7 and how the process can impact your unique financial situation. After carefully examining your financial situation and your goals, the team works to answer your many questions regarding the process.
Unsecured Debts Vs. Secured Debts
Unsecured debts are debts where the creditor does not have lien on any property. Chapter 7 bankruptcy allows you to discharge most unsecured debts. Understanding which debts are considered unsecured is a key step in choosing to file for Chapter 7. Unsecured debts include:
- Medical bills
- Credit card debt
- Personal loans
- Lines of credit
- Cash advances
- Certain tax debts
- Car loan deficiencies
Chapter 7 bankruptcy does not allow for the discharge of most student loans, certain tax debts and child support payments.
Secured debts are debts with collateral. Examples of secured debts are mortgage loans and vehicle loans. While Chapter 7 does discharge most debts we will work with you to keep any essential items such as your home and vehicles. This involves a process called “Reaffirmation” of particular debts where you keep paying those debts and keep the collateral.
To learn more about Chapter 7 bankruptcy, visit our Chapter 7 FAQ page.
Contact The Firm To Discuss Your Options
The Fava Firm staff has the skill and knowledge needed to help you understand your debt relief options and the impact a Chapter 7 filing can have on your financial situation. With the team’s assistance, you may even be able to be rid of your debt worries in less than 6 months, allowing you to begin rebuilding your financial standing quickly and effectively.