Chapter 7: Losing Debt For A Fresh Start
Are you overwhelmed by debts, with no hope of paying them off? Chapter 7 bankruptcy provides a fresh financial start by eliminating certain debts and ending the creditor harassment.
Ward & Spires, LLC, has helped many people in Augusta and throughout Georgia break free through Chapter 7 discharge of debts. Call us at 706-250-7797 to find out if you qualify.
The Benefits Of Chapter 7 Bankruptcy
Under Chapter 7 bankruptcy, many unsecured debts are erased. You may be able to discharge:
- Credit cards and charge cards
- Medical bills
- Utility bills
- Civil judgments
- Personal loans
- Some older tax debts
In general, bankruptcy cannot discharge unpaid child support or alimony, student loans, recent taxes, criminal fines or secured debts (car loans, boat loans, mortgage, etc.).
The other benefit of filing for Chapter 7 is the automatic stay. From the day you file, creditors can no longer call you, threaten you or otherwise harass you. The automatic stay also stops wage garnishment and other creditor actions.
Do I Qualify For Chapter 7 Bankruptcy?
To discharge debts, your income must be below the Chapter 7 means test threshold. Our experienced lawyers can determine if you are eligible.
If you earn too much or you are months behind on your mortgage or car payments, you may not be a candidate for Chapter 7. You could instead seek Chapter 13 bankruptcy relief to reduce your debts, keep your home or avoid repossession.
Is There A Catch?
Bankruptcy was created to give honest debtors a new start. Once your debts are discharged under Chapter 7, they are truly wiped clean. Those creditors cannot come after you. So what is the downside?
You might forfeit some assets. This is the trade-off of Chapter 7. In exchange for eliminating your debts, you might have to surrender some property, which the bankruptcy court sells to repay your creditors. However, under the Georgia bankruptcy exemptions, debtors are able to keep their retirement savings, home equity, a vehicle, work tools and many personal possessions. Some clients do not lose anything. We will advise you upfront what assets (if any) you might have to give up.
There will be a short-term impact on your credit. It will be harder to get loans or new credit cards for a while. But without all that debt, you can soon rebuild your credit stronger than it was.
- More questions? See our Bankruptcy FAQ.
Ready To End Your Debt Nightmare?
Bankruptcy is a big step, but it is a giant weight off your shoulders. We are not here to judge. We are here to help you “reset” your life. Our lawyers will help you make the most of the opportunities under Chapter 7 bankruptcy.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.