What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is commonly referred to as “liquidation” because it allows individuals to discharge their unsecured debt. These are debts and loans that are not secured by a house, car or any other asset. Typically, this includes:
- Credit card debt
- Medical bills
- Lawsuits or civil judgments
- Personal loans
- Taxes in some instances
One of the benefits of Chapter 7 bankruptcy is that it resolves one’s financial woes much quicker than a Chapter 13 bankruptcy — a few months as opposed to three to five years. That assumes, however, that your Chapter 7 bankruptcy petition sails through bankruptcy court, which is not a sure thing.
Chapter 7 may also be used by all kinds of debtors, including individuals, partnerships, limited liability companies and corporations. It may be the next step for a business that files Chapter 11 bankruptcy but fails to get back to profitability. Generally, partnerships, LLCs and corporations should only choose Chapter 7 if they wish to permanently terminate their business operations.
We Can Help You Make A Financial Fresh Start
The law firm of Goldsmith & Guymon P.C., in Las Vegas, Nevada, assists individuals with the bankruptcy process by preparing and filing the bankruptcy petition, schedules and related documents.
U.S. Bankruptcy Code does not require that you obtain legal representation when filing bankruptcy, but petitions that are incomplete or incorrect risk being dismissed. Meanwhile, some bankruptcy filings that are accepted fail to secure the full debt relief benefits that are allowed under the law.
We have thorough knowledge of bankruptcy laws, banking regulations, credit card regulations and other important aspects of bankruptcy that allow us to produce the best possible outcome for our clients. We help our clients complete the “means test,” which is based upon average monthly income for the past six months and will be used to determine whether they qualify for Chapter 7.
The filing of a Chapter 7 petition “automatically stays” most actions against a debtor and the debtor’s property, thereby putting an end to harassing phone calls and letters from creditors. In many cases, individuals are permitted to keep household goods and furnishings, a car and even remain in their primary residence.
Questions About Bankruptcy? Contact Us.
We welcome the opportunity to review your financial situation during a consultation. We will determine whether bankruptcy is the right decision for you and recommend the best steps to take. Call 702-873-9500 or email us to schedule an appointment with our experienced Las Vegas bankruptcy attorneys.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.