Chapter 7 Bankruptcy is the legal process designed to help those that can’t pay their bills, it will
wipe out or erase your obligation to pay certain debts. This benefit comes from the bankruptcy
“discharge” that you get for successfully completing the bankruptcy process. Chapter 7 Bankruptcy also
prevents creditors from taking any collection actions, such as making harassing phone calls and starting
litigation. If you are reading this, you may be looking for ways to deal with your debt. Your current
financial situation may have been caused by circumstances out of your control that destabilized your
financial security. Either way, you are looking for resources that could help you start fresh.

Chapter 7 Bankruptcy provides a new opportunity for individuals by relieving them of some, if not all, of their debts. Chapter 7 Bankruptcy, does this by taking your assets, converting these assets into cash, and distributing this cash to your creditors. Often, people are nervous that they will have to sell everything or even that they will lose their home during this process. However, the bankruptcy process allows you to keep certain assets, these are called exemptions. Our attorneys will walk you through which of your assets are protected through these exemptions and help you determine whether a bankruptcy is right for you.

In order to file for Chapter 7 Bankruptcy there are a few criteria that you have to meet. The first is a means test, or a financial eligibility test, however, most individuals who are eligible for our free services do not have a problem meeting this means test. Also, everyone who files for Chapter 7 Bankruptcy must receive credit counseling from an approved credit counseling agency prior to filing. It is important to note that the amount of your debt does not determine your eligibility to file, you can have a lot of debt or a little and you’ll still be eligible.

Chapter 7 does not relieve all types of debt. The type of debt that it will relieve is “unsecured” debt such as credit card debt and medical expenses. However, if you owe taxes, child support, or were ordered to pay restitution from a crime, then that debt will not be relieved. Please contact the bankruptcy experts at Consumer Bankruptcy Assistant Project to see which of debts you may have qualify to be discharged.

You may feel overwhelmed, but by contacting Consumer Bankruptcy Assistance Project, you are taking the first steps on finding the right path for you. There are many ways to stabilize your finances: you could meet with a financial counselor, you could try to negotiate better terms with your creditors, you could file for Chapter 13 Bankruptcy, or you could file for Chapter 7 Bankruptcy. Each of these options has its own pros and cons. Contact us to find out the right option for you.