Eligibility
Almost anyone can file a Chapter 7, individual consumers and companies.
Dischargeable Debt
The following debts are generally discharged and once your case is done, you will no longer be legally obligated to pay the debt no matter what. They are: (This list is not exhaustive but represents typical debt)
Credit Card/Charge Card Debt
Medical Debt
Doctor/Hospital Debt
Repossessed Car Debt
Foreclosed Home Debt
Utility Debt
Cell Phone Debt
Parking Tickets
Eviction Debt
Professional Fee Debt
Debt Owed to Family or Friends
Pay Day Advance Debt
Overdraft Fee Debt
Non Dischargeable Debt
The following debts are typically not discharged in a Chapter 7, meaning once your case is done, these creditors may still be able to take action against you.
They are: (This list is not exhaustive but represents typical debt)
Certain Income Tax Debt to the IRS
Certain Income Tax Debt to your State
Student Loans
Child Support
Restitution to a Court (*)
Claims Pursuant to Fraud
Claims Pursuant to Alcohol or Drug Offenses
Exemptions
Under the law you are allowed to keep most, if not all your stuff. The goal of bankruptcy is to give a person a fresh start, not to leave them destitute and penniless.
Federal Exemptions are the exemptions that are most widely used throughout the country. However, please note that each state may or may not have its own specific optional exemption tables that a debtor, with the advice of her attorney may choose to use if available, you should always consult an experienced bankruptcy attorney to find out if you should explore those options. Under the Federal Exemptions you can keep all of the following up to certain monetary amounts.
They are as follows: (This is not exhaustive but represents what types of assets a typical person owns)
All the Stuff In Your House (lamps, tv’s, chairs, etc.)
All the Stuff In Your Closet (shirts, ties, dresses, well you get the picture)
Your Bank Accounts
Your Retirement Accounts
Your Car
Your House
Under certain circumstances there may be creditors that a debtor may still want to pay, for example you may want, or need, to keep your house or car, you can continue to make those payments even in a Chapter 7.
As you can see, a Chapter 7 affords you an opportunity you get rid of a huge amount of debt and allows you to keep pretty much all of your stuff, of course each person should consult an experienced attorney for a complete and thorough analysis before making any decision.
Law Office of Charles L. Basch II
100 Kercheval, Suite D
Grosse Pointe Farms, Michigan
1-877-343-9930