Chapter 7 Questions And Answers
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is a debt discharge plan. Most of your debts are discharged and you don’t have to pay them back. There are certain debts that cannot be discharged under a Chapter 7 plan.
Should I file Chapter 7?
Clients who choose to file a Chapter 7 case generally do not have enough excess income to be able to make payments under a Chapter 13 filing. They may be looking for the easiest way to get out of debt quickly, and Chapter 7 is usually the way that works best under these situations.
Which debts cannot be discharged?
Debts that are secured, such as liens on your home or car, cannot be discharged under Chapter 7 if you want to keep the secured property. Most back taxes, student loans, and back child support and alimony are other examples of non-dischargeable debts under Chapter 7.
Can taxes be included?
Most back taxes cannot be discharged by filing Chapter 7 bankruptcy. However, in some cases where the tax returns were filed and the income taxes are old enough, they can be discharged.
Do both spouses have to file?
Both spouses may, but are not required to, file Chapter 7.
Will I lose any property if I file Chapter 7?
You are allowed to keep a set amount of property. Most people filing Chapter 7 get to keep all of their property.
How long does a Chapter 7 case last?
A Chapter 7 case generally takes approximately four to six months to complete.
Contact Phoenix Law In Livonia
For a free consultation with an experienced and caring bankruptcy attorney, call Phoenix Law in Livonia at 734-779-9999 or complete our contact form. We advise and represent bankruptcy clients throughout southeastern Michigan.