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CHAPTER 7

Striaght Bankruptcy

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Q-1. What is a Chapter 7 Bankruptcy Proceeding?

Q-2. What kind of debts CAN be "discharged" by filing a Chapter 7 Straight Bankruptcy?

Q-3. What kinds of debts CANNOT be "discharged" in a Chapter 7?

Q-4. Will I lose any property by filing a Chapter 7 straight bankruptcy?

Q-5. If I am financing the purchase of an automobile, truck, furniture, jewelry, or house, can I keep this property which I have pledged as security for the debt?

Q-6. How soon can my Bankruptcy be filed?

Q-7. Can anyone object to my filing a Chapter 7 Bankruptcy?

Q-8. After my bankruptcy case is filed, will I have to appear in court?

A Chapter 7 Bankruptcy straight bankruptcy is a legal procedure which allows an individual or business to be "legally excused" or "forgiven" from having to repay -- with certain exceptions -- unsecured debts.

In other words, if your debts are unsecured, they will be eliminated forever and your unsecured creditors will never be able to demand payment from you.

You can "wipe out" all of your credit card charges, medical bills, personal loans, balances owed on any bad checks and judgments, deficiencies owed on the repossession of any of your property, including your automobile, and virtually any amount owed on any lease or contract with a business or individual, including a landlord, health spa or school.

Although there are some exceptions, as a general rule you can not "discharge" the following obligations:

Taxes, which are less than 3 years old;

Student Loans, which are less than 7 years old;

Child and spousal support;

Criminal Court fines, traffic fines and parking tickets; and

Condominium or Homeoner's Association Fees;

Generally no! If you do not own a house, you can keep the following property as set forth in the first four (4) categories below.

All of your household furniture, appliances, clothing, and jewelry;

One or two automobiles;

Money in a retirement account or pension plan;

$15,800 in your bank account or anything worth $15,800, which may include stocks, bonds, gold, rare art work, a tax refund or another automobile.

So, because the bankruptcy law allows individuals to keep so much property, you will not lose any of your personal assets by filing bankruptcy.

With regard to those individuals who own and live in their homes, they will not lose their houses provided the equity in their residence does not exceed $50,000 for a single person or $75,000 for either a married couple or head of household. However, they will not be able to take advantage of the $15,800 allowance set forth in category d above. Still, they can keep all other property described in the first three (3) categories above.

Yes! If a creditor has a security interest in any of your assets, which may include vehicle, furniture, jewelry, appliance, or real estate, you can maintain possession of this property by simply continuing to tender your regular monthly payments.

Immediately. Upon the receipt of a complete listing of the names and addresses of all your creditors--which can include actual billing statements--and upon the full payment of all attorney fees, your bankruptcy petition can be filed the next business day.

Generally, no. You have the absolute right under the U.S. Bankruptcy Law to file a Chapter 7 straight bankruptcy provided you meet the two following requirements. ollowing property as set forth in the first four (4) categories below.
You have not filed a Chapter 7 Straight Bankruptcy within the last 6 years; and

You do not have the financial ability to repay your creditors.

No. Rather, you will only have to appear at a Chapter 7 creditors' meeting about six (6) weeks after your case is filed. The meeting is nothing more than a procedural formality. No judge is present.

The Chapter 7 Bankruptcy trustee, assigned to your case, will ask you several simple questions, such as:

Did you list all of your assets in your paperwork?;

Do you expect to receive an inheritance?;

Have you transferred your property to anyone within the last twelve (12) months?;

Do you own any real estate, and, if so,explain how you determined the value of your property.

After you have answered these simple questions, your hearing is concluded and you will never have to return again.

Chapter 13 Consolidation

Future Credit

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