Chapter 7


Also know as "liquidation bankruptcy!" 

Chapter 7 cancels most debts and protects your "exempt" property from your creditors.

Chapter 7 provides you with a clean slate.

• Stop - repossession
• Stop - foreclosure
• Stop - wage garnishment
• Stop - annoying calls
• Stop - utility disconnection

Most common reasons for filing are:
 - job loss, followed by the inability to find an equal paying
   position;
 - medical expenses;
 - divorce;
 - small business failure.

1. Secured debt - an asset secures the amount owed; thus, if you can not or do not pay the debt the creditor may take the asset.  Mortgages, car loans are examples.  A secured debt must be paid if you wish to keep the underlying asset.
2. Priority debt - is basically governmental debt; i.e. taxes, court or admistrative ordered domestic support oblications.  Prioity debts for the most part are not dischargeable and must be paid in full.  Some exceptions apply, so check with your attorney for specific information.
3. Unsecured debt - credit card debt, personal loans, medical bills; unsecured debts are generally dischargeable.

 
Bankruptcy is not a "do it yourself" project!

Law Office of Wm. E. Campbel
The Edison
85 Exchange St., Suite 201
Lynn, MA 01901
781 599 9400
781 498 2779 [fax]
campbell@BankruptcyLawyerMA.com

Experience you can trust