Chapter 7 Bankruptcy
To help protect debtors, the United States government provides several chapters of bankruptcy under which one can file. Chapter 7 bankruptcy is open to individuals, partnerships, corporations, and other businesses to help them get back on their feet.
Bankruptcy can be a stressful and challenging time. If you are under attack from creditors and need help with solving your problems, contact a New Orleans bankruptcy lawyer from Kervin & Young, LLC today by calling 504-599-5906.
Overview of Chapter 7
Chapter 7 bankruptcy provides an individual with a way to get his or her finances and debt under control. Once you file for this form of bankruptcy, a trustee will be appointed to your case. This person will liquidate your nonexempt property; this money will then be used to pay off your debt.
Nonexempt property typically includes:
- Second cars
- Vacation or second homes
- Heirlooms
- Valuable collector’s items
- Expensive musical instruments unless they are career-related
- Cash, stocks, bonds, and other assets
However, states’ laws can vary on their property definitions, which can mean that other things may be considered nonexempt as well. Of course, exempt property usually includes reasonably necessary items such as clothing, household goods and furnishings, professional tools, and sometimes motor vehicles.
Chapter 7 is sometimes called the honest debtor’s chapter. This is because if you file for Chapter 7 as an individual debtor, there is a chance that you might have some of your discharged debts forgiven. However, this is not always guaranteed.
Contact Us
Navigating the various chapters of bankruptcy can be confusing. If you or someone you know is struggling with bankruptcy, you should contact an experienced bankruptcy attorney to help you get your debt under control. For more information regarding Chapter 7 bankruptcy as well as other forms of bankruptcy, contact a New Orleans Chapter 7 bankruptcy lawyer at the firm of Kervin & Young, LLC today at 504-599-5906.