Chapter 7 Bankruptcy

Chapter 7 bankruptcy allows an individual to erase most or all of his or her debt while being permitted to keep some property he or she may have.

Often, an individual may keep their home or car (secured debt), provided they continue to make current payments and are up to date on their loan.

Chapter 7 eliminates...

• Credit Card debt
• Medical debt
• Personal loan debt
• Lawsuit debt
• Judgements - Unless fraud or criminal related
• Deficiency debt on repossessed autos and foreclosures
• Certain other exceptions may apply
• Personal Injury Debt - except driving while intoxicated and criminal injury.
• Some other exceptions may apply.

Chapter 7 is the most frequently filed form of bankruptcy and may allow for a fresh start. More and more people find themselves struggling with out-of-control debt. Chapter 7 bankruptcy allows for their debt to be dismissed and lets them gain control of their financial situation with a new start.

Chapter 7 does not eliminate student loans except undue hardship cases, debt from certain types of taxes, alimony maintenance or support payments, fines, penalties and criminal restitutions, debt incurred through fraudulent conduct, debt incurred through intentional injury to person or property or debt from personal injuries caused by driving while intoxicated.

The State Bar does not certify any lawyer as a specialist or expert. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.