Chapter 7 Bankruptcy
Chapter 7 bankruptcy is commonly known as a “liquidation”. It works so that your unsecured debts are deemed discharged by the court, and you cannot be forced to pay them.
Certain debts are not eligible for a discharge. Examples of debts not eligible for a discharge are:
- Certain Income taxes, pay roll taxes
- Child support
- Criminal fines
- Student loans (now known as “educational benefits”)
Examples of unsecured debts that may be discharged include:
- Credit card debt
- Personal loans
- Bank loans
- Bank fees
- Foreclosure deficiencies
- Lawsuit Judgments
- Past due utilities
- Rental unit damages or past due rent
- Medical bills
- Co-signed loans
- Store credit
- Payday loans
- Most other debts
Secured debt is debt you pledge with collateral. Examples are auto loans and home loans. In some instances, appliance, jewelry and computer loans may be “secured” by the items you purchased. You may discharge secured debt, but you must surrender the collateral. If you want to keep the collateral you must keep paying for it. Examples of secured debt are:
- Mortgages on homes, lots or vacant land
- Vehicle loans
- Loans secured by a boat, snowmobile, motorcycle, travel trailer, ATV or lawn tractors
- Certain appliance purchases
A Chapter 7 bankruptcy is on your credit report for 10 years.
You must wait 8 years before filing again. If you change chapters, this time frame is 2 years.
We can determine if you qualify for a Chapter 7 bankruptcy. Please call Corcoran Law Office at (231) 929-7000 for a free confidential evaluation of your situation.