What Type of Lawyer is Right for a Chapter 7 Filing?

Filing Chapter 7 bankruptcy is a serious decision.  It should not be taken lightly.  A Chapter 7 bankruptcy is a complete liquidation of your assets to pay your creditors.  Before you make a decision to file for Chapter 7 or file under any other bankruptcy Chapter, you should consult with a bankruptcy attorney.  

Who Can File? 

An individual or a business may file for Chapter 7 bankruptcy.  In the case of an individual, if you do not have substantial assets, then Chapter 7 is a good choice because it allows you to get rid of your debts, except those that cannot be discharged by statute, and start fresh.  There are state and federal statutory exemptions which allow you to keep your home, car and some of your personal assets.  Each state has different exemption laws.  You may be able to choose between your state exemption or the federal exemption, depending on which exemption has a higher limit.  Also, keep in mind that certain debts cannot be discharged, including the following: 

• Current federal, state, and local taxes.  Federal taxes that are older than 3 years may be discharged.
• Child support and spousal support.
• Student loans.
• Government fine and penalties.
• Court fees.
• Drunk driving debts.
• Debts from willful or malicious injury to another person or another person's property (if challenged by a creditor).
• Debts from embezzlement, larceny or breach of trust (if challenged by a creditor). 
• Debts owed under a divorce decree or settlement unless after bankruptcy you would still not be able to afford to pay them or the benefit you would outweigh detriment to your ex-spouse.
• Debts you incurred as a result of lying on a credit application (if challenged by a creditor).
• Purchases you made for luxury goods or services 60 days prior to filing for bankruptcy (if challenged by a creditor).

With regard to a business, a bankruptcy attorney can advise you whether you should file for Chapter 7 and close down your business and liquidate your assets to pay off creditors or reorganize under Chapter 11.  Filing for Chapter 7 eliminates the stress of figuring out how to pay your creditors.   It stops collection actions against your business, and allows you to pay salaries and taxes.  If you are leasing commercial space, filing Chapter 7 also allows you to terminate your commercial business lease early.

Hire a Bankruptcy Attorney

Bankruptcy laws are extremely complicated.  A bankruptcy attorney is an expert in bankruptcy matters, and can explain the bankruptcy laws to you.  The attorney can file the bankruptcy petition for you, and represent you in bankruptcy court.