Solutions // Chapter 7 Bankruptcy
It is the fastest and most affordable type of bankruptcy.
Imagine your life without debt. No more collection phone calls and ‘past due’ letters. No wage garnishment. No lawsuits. No foreclosure. And most importantly, no more sleepless nights.
Chapter 7 bankruptcy provides a path to a fresh financial start for individual and business debtors deep in debt without the ability to repay it. It enables debtors to eliminate most types of debt in as little as ninety days and often without any type of repayment.
- Protect property. Although chapter 7 is commonly referred to as the ‘liquidation’ bankruptcy, most debtors are able to protect and retain all personal property thanks to the comparatively generous bankruptcy exemptions in Arizona.
- End creditor harassment. Filing any type of bankruptcy creates an ‘automatic stay’ that instantly stops collection activity including telephone calls and letters, wage garnishment, lawsuits, and even foreclosure.
- Eliminate debt. Chapter 7 discharges personal liability for most types of debt, including credit cards, medical debt, most personal loans and civil judgments, and certain tax debt. Some debts are non-dischargeable, e.g. child support, spousal maintenance, restitution, government fines, debts procured by fraud, judgments for intentional torts, and certain taxes. Student loans also are very difficult to discharge through bankruptcy, though it is possible.
- Simple and quick. Most chapter 7 bankruptcies are completed within approximately ninety days and most debtors who file chapter 7 never see the inside of a courtroom. These debtors are only required to attend one formal proceeding called the 341 meeting of creditors where the bankruptcy trustee will ask the debtor questions under oath.
- The means test. Unfortunately, not everyone qualifies for relief under chapter 7. Debtors must pass the ‘means test’ which measures their ability to repay debts. The easiest way to determine chapter 7 eligibility is to take advantage of a free consultation with one of our experienced bankruptcy attorneys. We will take the time to answer all of your questions and discuss your options, including alternatives to bankruptcy.