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Chapter
7 bankruptcy is designed to help people who are unable
to pay their existing debts. The purpose of filing a
Chapter 7 case is to obtain a discharge of your existing
debts (in other words, to wipe out your debts and no
longer be held responsible).
Under
Chapter 7 a trustee, who is an attorney assigned by
the court to determine if you have any assets which
may be seized for the benefit of your creditors, takes
possession of your property that is not considered "exempt."
Common exempt property types are:
Bank
accounts with a total value of up to $2,500
Automobiles
with total equity of up to $2,400
Household
furniture with a value of up to $5,000
Clothing
and jewelry with a value of up to $5,000
Pension
plans, 401(k), 403(b), deferred compensation
Any
employer-related retirement accounts
Homes
with a total equity of up to $10,000 per spouse
Unfortunately, not every debt can be wiped out.
Debts that are not wiped out include:
most
taxes (please review IRS Publication 908 with an attorney)
child
support
alimony
*student
loan
court-ordered fines;
restitution
debts obtained through fraud or deception
personal
injury debts caused by driving while intoxicated or
taking drugs.
*(unless the bankruptcy court determines
that the repayment of those loans would create an undue
hardship on you)
You
should know you have certain legal rights and must be
very selective of the Lawyer or Law Firm that you chose
to represent you.
Beware
of Credit Scams
Have an Attorney council you on the Right Decision for
You.
Get a Free Consultation today.
Corporate
Office:
445 Broadhollow Rd.
(Route 110)
Suite CL-10
Melville, NY 11747
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