Chapter 7 is the type of bankruptcy that eliminates most debts and protects most property. It’s the best choice when a person has debts that can all be eliminated and owns no property that will be taken away in the bankruptcy.

An example of how Chapter 7 will work.
Susan owes $15,000 on various credit cards bills, she owes several thousand for medical bills. She earns enough to pay her regular living expenses that include her house payment and car payment. She has no hope of ever being able to pay the credit card and medical bills. Her recent divorce and medical problems have left her hopelessly behind on the bills.

A chapter 7 bankruptcy will eliminate Susan’s credit card bills and medical bills. Technically, it will also eliminate her car and house loan. But, Susan wants to keep both the house and her car. She will need to continue to pay those bills to avoid losing them to repossession and foreclosure. Because she does not own any expensive luxury items or investments, she won’t lose any property in her Chapter 7 bankruptcy.

If you are having financial hardship and are considering filling for bankruptcy, please call our office at (209) 547-9291 for a free confidential stockton bankruptcy consultation.

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