Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is a legal proceeding to resolve your debts and is based on the concept of a fresh start that you are entitled to receive if your facts fit properly under the provisions of the Bankruptcy Code. Thousands of New Hampshire residents file to receive their “fresh start” each year. Chapter 7 is by the far the most commonly filed type of Bankruptcy. It is called a “liquidation” Bankruptcy because non-exempt assets can be sold by the Trustee for the benefit of creditors. However, almost all Chapter 7 Debtors retain all of their assets including their homes, cars, motorcycles, retirement accounts, money in the bank etc. (Please see our lengthy FAQ answer to the question of “What about my stuff? What am I going to lose?)
These are called “no-asset” Chapter 7’s. If assets were at risk, we would have thoroughly explored that long before filing a case. The reality is that available exemptions to protect assets are quite generous which is why almost everybody that files Chapter 7 Bankruptcy keeps everything. The Bankruptcy discharge is the order that relieves you of the legal obligation to pay the debts. It wipes them out. It takes just over 90 days to complete a Chapter 7 and receive the order discharging the debts. This order discharges credit cards, personal loans, older IRS debt, online loans, medical bills, car repossessions, lawsuits, utilities (while keeping the lights on), foreclosure deficiencies etc. Pretty much everything gets wiped out by a Chapter 7 discharge except: child support, alimony, recent IRS debt, student loans and criminal restitution/fines. There are other types of debts that may not be discharged which your attorney will discuss with you if appropriate, though these are quite uncommon. This does not mean people are getting people free cars and houses. We do not get to wipe out secured debts (car loans/home loans) and keep the property without paying for it. You will need to keep paying for the car, house or motorcycle after the Bankruptcy just like before if you want to keep it.
We provide a free hour long consultation at which we will explore all Bankruptcy options as well as any alterative debt resolution strategies. The goal is for you to walk out the door with a lot less stress and the ability to make an informed decision on the best course of action to resolve your debts.