Chapter 7 bankruptcy offers a unique array of advantages to borrowers struggling with debts they can't pay; however, many people who could benefit hesitate to take this option. For those unsure what bankruptcy is or what benefits it offers, Sam Turco Law Offices, with offices in Omaha and Lincoln, NE, would like to clear up some common points of confusion about filing for bankruptcy.
FAQs on Chapter 7 Bankruptcy
Can All Debts Be Discharged in a Chapter 7 Bankruptcy?
While not all debts can be eliminated in Chapter 7 bankruptcy, the vast majority are eligible for discharge. This includes credit card debt, medical bills, lines of credit, and even some back taxes. However, there are some critical exceptions, which is why you should always consult with a bankruptcy attorney before filing.
Will I Lose All of My Property?
In exchange for eliminating your unsecured debt, the trustee of the court is entitled to seize your nonexempt property and sell it off to pay your creditors. However, the bankruptcy code exempts a wide variety of belongings, including some equity in your home, vehicle, tools, and even some jewelry. Depending on your finances and the expertise of your lawyer, you may actually be able to keep all of your belongings.
Will Chapter 7 Bankruptcy Prevent Foreclosure?
Both Chapter 7 and Chapter 13 bankruptcies include an automatic stay, which puts an immediate stop to all collections activities. In the case of a foreclosure, this stay is temporary and will likely allow you several months to find a new living situation. However, if you can restructure your mortgage before filing, you may be able to save your property from foreclosure.
Since 1992, the Sam Turco Law Offices has helped Nebraska residents get the debt relief they need with attorneys who focus entirely on bankruptcy law. To learn more about Chapter 7 bankruptcy, visit their website. Schedule a consultation by calling (402) 614-7171 today.