Chapter 7 bankruptcy

Chapter 7 is commonly called the “straight” bankruptcy. It is used by individuals to get a “fresh start”. A Chapter 7 Bankruptcy discharges or eliminates most of your debts such as credit cards, medical bills, bank loans, payday loans, and deficiency balances on repossessions. Certain debts such as newer taxes, spousal and child support, and student loans cannot be discharged in bankruptcy. If you have any property that has a value or equity more than we can exempt (“protect”) for you, a Chapter 7 Trustee can sell the property to pay something to your creditors. The vast majority of Chapter 7 cases do not have any property sold as Virginia’s exemptions are very broad and protect most property. If we determine that any of your property would be at risk in a Chapter 7, we would recommend filing a Chapter 13 Bankruptcy where there is no risk of a trustee selling your property. Also, if your monthly household income exceeds the amount allowed under the Bankruptcy Code, Chapter 13 will be your only option.

Businesses (corporations and LLC’s) that wish to liquidate and terminate their operations also can use Chapter 7 to close their businesses and provide for an orderly liquidation of their assets by the trustee.

Kane & Papa will help you navigate through this process to make sure you obtain the best result possible. We will be there at all court proceedings to make sure your interests are represented and you are protected to the fullest extent of the law.

Chapter 7 is ideal for individuals with:

  • Very few assets.
  • Significant unsecured debt (payday loans, medical bills, credit card debt).
  • Minimal household income.

A Chapter 7 bankruptcy stays on your credit report for 10 years.

The fees and costs to file a standard Chapter 7 for individuals is $1,800.00.

Chapter 7 and Chapter 13

The United States Bankruptcy Code permits individuals with financial problems to file for bankruptcy protection under either Chapter 7 or Chapter 13. Both Chapter 7 and Chapter 13 will protect you from your creditors once the case is filed.

The attorneys at Kane & Papa have over 30 years of experience in successfully representing individuals in both Chapter 7 and Chapter 13 Bankruptcies, and have given thousands of people the financial freedom they so desperately needed.