CHAPTER 7

Chapter 7 bankruptcy is generally for individuals who have limited income. To be eligible for a Chapter 7 bankruptcy your income must be under the median income (set by a government standard) or you must pass an analysis known as the means test.  Obtaining a discharge is generally the top priority for individuals filing under Chapter 7.  A discharge means that the credit cards, medical bills and other bills that are causing you stress and concern will be declared no longer collectible:  you will be free of the debt and the related worry it has been causing you.   With that in mind, it is imperative that you and your attorney clearly understand, before the case is filed, the types of debts that can and cannot be discharged under Chapter 7.


A common misconception is often the affect of a Chapter 7 filing on liens encumbering real or personal property.  A Chapter 7 discharge does not clear liens clouding title to your assets.  Certain property liens, such as those created by mortgages are complicated, while other liens, such as judicial liens created by creditors holding judgments, can be cleared from title but only through special Motions that must be filed during the bankruptcy proceedings.


Some common debts that require special attention are; taxes, alimony, child support, restitution awards, debts for fraud or other intentional actions and debt created through the recent use of credit.  All of these debts require a thorough analysis by an experienced bankruptcy attorney.  A successful discharge renders all dis chargeable debts no longer collectible. How this will work for you is determined on an individual basis.  An experienced bankruptcy attorney from Legal Objective is prepared to review your situation free of charge, so take the next step to living debt free and contact our office.

Once the filing is in process, all creditor problems will be ?on hold? due to the ?Automatic Stay.? In fact, almost no one can take any legal action against you without the Bankruptcy Court?s permission.  This stay can last for several months or for the entire duration of the bankruptcy.