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Chapter 7 Bankruptcy Explained

Choosing to file for bankruptcy can be a difficult decision, but living under the weight of debt can be debilitating. Further, bankruptcy can be a confusing area of law and there are many myths and misinformation floating around about bankruptcy.

Here at the Law Offices of Barbara B. Braziel we help hundreds of families, just like yours, file for bankruptcy protection every year.

Chapter 7 Bankruptcy Explained

Chapter 7 Bankruptcy eliminates credit card debts, medical debts, and other types of debt. In fact, Chapter 7 eliminates most unsecured debts. Unsecured debts are debts that are not backed by anything. Meaning they do not have property attached as collateral.

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 consultation.

Benefits of Chapter 7 Bankruptcy

  • Erases most unsecured debts: including credit card debt and medical bills.
  • Stops all collection action.
  • Stops harassing phone calls from creditors.
  • Stop wage garnishments and bank levies.
  • Stops lawsuits filed by creditors.
  • Depending on your specific situation you will most likely be able to keep your car and your home. It is more likely that you can keep your car or home if your payments are current and there is not significant equity.

Chapter 7 bankruptcy might be the solution to your debt problems. However, depending on your specific case, you may still owe on some debts after bankruptcy, such as newer tax debts and student loans. Also, Chapter 7 cannot help you catch up on mortgage arrears or missed car payments (though Chapter 13 bankruptcy can).

Filing for bankruptcy will adversely affect your credit score in the short term; however, if you have already fallen behind on paying your debts, your score has likely already decreased.

Qualifying for Chapter 7 Bankruptcy

Qualifying for Chapter 7 bankruptcy was made more difficult in 2005 when congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). To qualify for Chapter 7 debtors must have an income below the state median for their household size, or if above the median, must pass the Means Test.

When you hire us to represent you, it is our job to determine if you are eligible for bankruptcy relief.

Costs of Filing Chapter 7 Bankruptcy

Those costs of filing for Chapter 7 include: court filing fees, mandatory credit counseling fees, and attorneys fees.

When we meet for a free consultation, we will go over all of the costs together. There will not be any surprise fees or costs down the road.

After Filing for Bankruptcy

At the conclusion of a Chapter 7 bankruptcy you will not be buried under the weight of debt. You will no longer receive harassing phone calls from creditors. You will have a fresh start. Contact us today to schedule a free consultation to learn how bankruptcy can help you and your family.

The Law Offices of Barbara B. Braziel proudly serves Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City, GA.


We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.


How Will I Know Which Chapter to File? Chapter 7, 11, or 13 Bankruptcy?

With so much misinformation and myths about bankruptcy floating around, it is no wonder people are so confused. Some of our clients come to us feeling overwhelmed by bankruptcy before they’ve even begun the process. Here at the Law Offices of Barbara B. Braziel we strive to make the process smooth for you, and easy to understand.

We will explain the different chapters of bankruptcy and how filing will affect you and your family. When we meet for a free consultation we will go over the pros and cons of the various chapters and help you determine which chapter is best for you.

The “chapters” come from the United States Bankruptcy Code, and the numbers represent the code sections. In a nutshell: Chapter 11 is designed for businesses, and Chapters 7 and 13 are designed for individuals and families.


Chapter 11 Bankruptcy

Chapter 11 bankruptcy is for businesses, including corporations and partnerships. This chapter allows businesses to create a repayment plan to pay back their debts over time. The goal is to get the business solvent and prevent it from shutting down.

In the aftermath of the great recession a number of huge corporations sought Chapter 11 protection. The list included Chrysler filing for Chapter 11 bankruptcy in 2009 and American Airlines filing in 2012. If you’re interested in learning more about business bankruptcy, Business Insider compiled an interesting review of The 11 Largest Bankruptcies In American History.


Chapter 7 Bankruptcy 

Chapter 7 bankruptcy erases credit card debts, medical bills, and other unsecured debts. It is the most common form of bankruptcy for an individual or married couple. Chapter 7 is also the simplest and quickest form of bankruptcy, with the entire process generally taking only four to six months to complete. Most people get to keep most or all of their belongings through the bankruptcy.


Chapter 13 Bankruptcy 

Chapter 13 bankruptcy is similar to Chapter 11, but is designed for people instead of businesses. Chapter 13 allows a debtor to create a three to five year repayment plan to pay back some or all of their debts.

Both Chapters 7 and 13 are powerful tools to help people solve debt problems. Chapter 13 offers the added benefits of allowing debtors to catch up on missed mortgage payments, missed car payments, and missed spousal or child support payments.

To better understand Chapters 7 and 13, read our article The Differences Between Chapter 7 and Chapter 13 Bankruptcy.

If you line in Savannah, GA or the surrounding areas and have more questions about the various chapters of bankruptcy, let’s meet for a free consultation. Please reach out to us at (912) 351-9000 or contact us by filling out this simple web form.


We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.