We often say that bankruptcy is a powerful debt relief tool. Chapter 7 bankruptcy eliminates credit card debts, medical debts, and other types of debt.
Some of the Chapter 7 powers and benefits include:
- Erases most unsecured debts.
- Stops harassing phone calls from creditors.
- Stops wage garnishment.
- Stops lawsuits filed by creditors.
- Stops, at least temporarily, foreclosure or car repossession.
- Stops all collection action.
- Depending on your specific situation, you will most likely be able to keep your car and your home.
Chapter 7 bankruptcy might be the solution to your debt problems. Read on for Chapter 7 keys to success to ensure that your case makes it to the discharge phase!
Click here to read Chapter 13 Keys to Success.
Understand What Debts Are Erased In Chapter 7 Bankruptcy
Not all debts can be erased in Chapter 7 bankruptcy. It is important that you understand which of your debts will be erased, and which of your debts will survive the bankruptcy.
Debts that are erased are called dischargeable debts and do not have to be paid back after a successful bankruptcy. Dischargeable debts include:
- Credit cards
- Medical bills
- Collection agency debts
- Personal loans
- Most civil court judgments (unless based on fraud)
- Certain tax debts (older tax liabilities may be erased)
- Other unsecured debts (debts that are not backed by collateral)
Debts that are not erased in bankruptcy are called nondischargeable debts, and these must be paid back after bankruptcy. Nondischargeable debt includes:
- Student loans
- Certain tax debts (newer tax liabilities are not erased)
- Back child or spousal support
- Secured debts, such as your house or car (if you want to keep the item, you must pay back the loan)
- Civil or criminal debts based on fraud
Stay Current on Your Bills
After filing for bankruptcy you must remain current on your post-petition monthly obligations such as your rent, electric bill, spousal or child support payments, car payment (if you plan to keep your car), and mortgage payment (if you plan to keep your house). Failure to stay current on any of these payments may result in serious consequences.
Make sure you talk with your attorney about what monthly payments you must continue to make after filing for bankruptcy.
Complete Debtor Education
Debtor Education must be completed after filing for bankruptcy. It is a mandatory two-hour course in personal financial management. The curriculum is designed to teach you strategies on how to handle your finances after bankruptcy.
You must complete this within 60-days after the first Meeting of Creditors. After you finish Debtor Education you will receive a certificate of completion, which must be filed with the Bankruptcy Court along with Bankruptcy Form 23, Debtor’s Certificate of Completion of Instruction Course.
When you work with us, our office will handle filing this certificate for you, along with all other necessary paperwork for your bankruptcy case.
Understand the Benefits of Bankruptcy
It is our mission to ensure that you understand the power and benefits of Chapter 7 bankruptcy. We’re here to answer all of your questions. Call us right now (912) 351-9000 to schedule a free no-obligation consultation.
Reach out to us by email at info@BrazielLaw.com or call (912) 351-9000.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.