If you find yourself in over your head with debt, you have options, even though you might feel hopeless at times. Chapter 7 bankruptcy is one way to eliminate your debt and clean your financial slate, but not everyone qualifies for it. The experienced attorneys at The Gil Law Firm in Dothan, AL, will help you determine if you are eligible to declare bankruptcy.
Here, they’ll answer three frequently asked questions about Chapter 7 bankruptcy:
How Does Chapter 7 Bankruptcy Work?
In Chapter 7 bankruptcy, which is also called “straight” or “liquidation” bankruptcy, an individual can discharge most types of debt by turning over all nonexempt property to a trustee, who then sells it in order to provide at least partial payment to creditors. Since few people have nonexempt property, those who file a Chapter 7 bankruptcy typically get to keep most or all of their property.
Is It Hard To Qualify For Chapter 7 Bankruptcy?
In 2005, Congress amended the laws regarding bankruptcy, and it is now harder for some people to qualify for Chapter 7 bankruptcy. However, you shouldn’t be discouraged: It is still possible, especially with the help of a lawyer. At The Gil Law Firm, their bankruptcy attorneys know what you need to qualify and will help you gather all the necessary documents.
Does Chapter 7 Bankruptcy Wipe Out All Unsecured Debt?
Chapter 7 bankruptcy eliminates several types of unsecured debt, which is debt that is not tied to any tangible property, like a house or a car. For example, it wipes out medical bills and credit card debt. It does not erase child or spousal support debt, most student loans, debts incurred on the basis of fraud, or tax debts from the previous three years.
If you are considering filing a Chapter 7 bankruptcy, turn to the attorneys at The Gil Law Firm in Dothan for help. Visit their website to learn more about their areas of practice, or call them at (334) 673-0100 to schedule a consultation with a bankruptcy attorney today.