Q: What is Chapter 7 bankruptcy?
Chapter 7 of the United States Bankruptcy Code allows for a debtor to get a fresh start financially by surrendering certain assets to the bankruptcy court, which will be liquidated and the proceeds will go to pay off creditors. Following completed Chapter 7 proceedings, all eligible debt will be discharged.
Q: What are some of the
advantages of Chapter 7
Once you file under Chapter 7, all creditors must stop any and all collection efforts against you. This includes wage garnishment, freezes on your account, phone calls, letters, repossession and more. There is no limit to how much debt can be discharged. Either an individual or a business may file under Chapter 7.
Q: What are the
disadvantages of Chapter 7
Certain property/assets may be forfeit, and not all debt can be discharged (such as certain taxes or student loans). Filing for bankruptcy may also have negative effects on your credit.
Q: Will I lose all my property?
Not necessarily. Certain property and assets are protected from liquidation, and a lawyer can help you understand what property is exempt and can help protect it.
Q: Can all debts be discharged?
Not all debts are eligible to be discharged in Chapter 7 bankruptcy proceedings. This includes some student loans, child support, spousal support, and certain taxes.
Q: How long does Chapter 7 take to complete?
A typical Chapter 7 bankruptcy case takes approximately 3 to 6 months to fully complete.
Contact a Long Island bankruptcy attorney
at Jacoby and Jacoby today to find out more about bankruptcy and how we can help.