Reasons to Choose Chapter 7 Bankruptcy

: Reese Baker & Associates

  Filed under: Chapter 7

If you are behind in your debt and are getting phone calls and letters from your creditors demanding payments and threatening to take you to court, you may want to consider bankruptcy to eliminate your debt and get a fresh start.

Fast and Effective

Chapter 7 bankruptcy is easy to file, fast, and an effective way to eliminate debt. Chapter 7 usually takes three to six months to complete. At the end of that period, your unsecured debt will be discharged. You will not have to make court-approved payments like in a Chapter 13 bankruptcy.

Unsecured Debt

The most common unsecured debt that will be eliminated is medical debt, credit cards, payday loans, judgments, personal loans, some taxes, and late utility payments. Debt that will not be dismissed is alimony, child support, current taxes, student loans, and debts owed as restitution or fines.


The trustee assigned to your case will collect any property that is not exempt, sell it, and distribute it to your creditors. State or Federal exemptions are usually generous enough to allow you to keep all of your possessions. Depending on which set of exceptions you choose some of the items exempt (meaning they cannot be seized) include equity in your home and vehicle, household items, personal items, life insurance, pensions, and retirement accounts. Ask your bankruptcy attorney which exemptions would be the best for your situation.

If you have more questions about bankruptcy and wonder if Chapter 7 will give you some financial relief, contact a Rio Grande bankruptcy attorney to discuss what options you may have.