Chapter 7 Bankruptcy is a complete discharge of most unsecure debts. Examples of unsecure debt include credit card debt, personal loans, eviction debts, utility bills, uninsured car accident judgments, deficiency amounts owed on repossessed or surrendered vehicles, and other similar debts. Generally, Chapter 7 bankruptcy will not discharge debts derived from certain types of tax liability, government fines, forfeitures, restitution, criminal or fraudulent conduct, child and spousal support, drunk driving, most student loans, and debts resulting from intentional and malicious injuries.
A Chapter 7 Bankruptcy is available to people with secured debts as well. In the case of a debtor with a secured debt, the debtor may have the option of keeping the collateral and keeping the debt. The person with debt in a Chapter 7 Bankruptcy may also choose to surrender the collateral and seek a discharge of the debt.
On average, a Chapter 7 Bankruptcy takes approximately 3 months to complete. Within 30 to 40 days of filing the petition, a hearing will be held where the Debtor is required to appear. Provided that there are no complications, a Notice of Discharge is usually sent to the person with debt approximately 3 months after the hearing. Creditors are given notice of the hearing and may attend. A person with debt may only file a Chapter 7 Bankruptcy once every eight (8) years.
Please call the Hedtke Law Firm at 909 736-3111 to schedule a free consultation.