Chapter 7 Bankruptcy Offers You the Most Complete Relief
At O'Bryan Law Offices, our experienced bankruptcy attorneys help people decide whether to file for bankruptcy, and which form of bankruptcy relief to choose if options are available. For most people, Chapter 7 bankruptcy will result in the most complete relief from indebtedness. To find out whether you are eligible for Chapter 7 relief and whether it's right for you, contact us in Louisville, Frankfort or New Albany for a free consultation. Also, you can read the Frequently Asked Questions to learn more about Chapter 7.
Most unsecured debts are eligible for complete discharge in Chapter 7
The main benefit of bankruptcy under Chapter 7 is the prospect of a complete discharge of most unsecured debts. Although certain obligations like recent taxes, student loans or child support are not dischargeable in bankruptcy, you can end up walking away from most other claims: credit card debt, medical bills, revolving loan accounts, or any other debt that is not supported by collateral or covered by some rather narrow exceptions. Not everyone qualifies for Chapter 7 relief, however. Your gross household income has to be no greater than the state median in Kentucky or Indiana, as the case may be. We can analyze your income and expenses to see whether you qualify for Chapter 7 bankruptcy.
Proper use of exemptions helps you get the full benefit of Chapter 7
In theory, at least, the principle of Chapter 7 is to sell off your assets and divide the proceeds among your unsecured creditors, leaving you supposedly without property but at least free of debt. However, fortunately it doesn't really work that way. Both Kentucky and Indiana have detailed schedules of exemptions that allow you to claim certain property as unavailable to creditors. In most cases, holders of unsecured claims collect little or nothing from you, and you keep everything you have.
People with substantial equity in their homes or who own valuable nonexempt property might find a Chapter 13 debt consolidation and repayment plan to be a better choice, that way, there is little or no risk that you will have to liquidate assets to meet the claims of creditors. Many of the Chapter 7 cases we file are "no-asset" cases that expose the debtor to no risk of loss.
We work closely with our clients to help them get the most out of Chapter 7
The Chapter 7 discharge is the most complete relief available under the Bankruptcy Code, but it comes with certain responsibilities. You need to make a full and accurate disclosure of your debts and assets. Your case will be supervised by a trustee, who will be interested to see if there are nonexempt assets available for unsecured creditors. The trustee can also recommend denial of discharge or dismissal of your case if you don't follow the bankruptcy rules.
Our lawyers make sure that you understand your responsibilities and we help you meet them. The vast majority of Chapter 7 debt relief cases proceed smoothly from filing to final discharge, which is our goal in every case. To learn more about our Chapter 7 bankruptcy practice, contact us at O'Bryan Law Offices in Louisville, Frankfort or New Albany.