Chapter 7 is the most common form of bankruptcy, and is the quickest and least expensive type of bankruptcy to discharge most debts and retain most assets, such as your car or your home.
A Chapter 7 bankruptcy is commonly referred to as a “liquidation bankruptcy” because if you have assets worth a lot more than your debt, these could be sold by the Court to pay your creditors. The Tinsman Bankruptcy Team will work diligently and aggressively to help you keep your property, and use the provisions of Chapter 7 to help erase or reduce your debt.
Chapter 7 bankruptcy allows you to get rid of most, if not all, of your unsecured debt, such as credit card debt, medical debt, signature and payday loans, collection accounts, repossession balances, lawsuit judgements, utility bills, and so on, while allowing you to keep your property.
Exemptions are the laws that allow you to protect property from creditors so that even after a bankruptcy, you will have the basics you need to return to a normal life. However, if you choose the wrong exemption, you can lose property. That is why you need an experienced professional to ensure the right law is claimed for you.
Keeping Your Property
You don’t have to lose your car or home in a Chapter 7 bankruptcy. You can “reaffirm”, or keep, secured loans, such as mortgages and car loans at the same monthly payment and interest rate, and therefore retain possession of your home or automobile. Sometimes we can even negotiate with a creditor to reduce the debt and/or interest rate.
Tax Consequences of Filing Chapter 7
The discharge of debt is not taxable. However, if you operate a business, you may lose the ability to carry over prior year tax losses after a Chapter 7 bankruptcy. Consult a tax professional for further details regarding your specific situation.
Bankruptcy Stops Collection!
The “automatic stay”, which is invoked on the day you file your bankrupty, stops:
– collection calls
If you are drowning in debt, contact the Tinsman Bankruptcy Team in Springfield, Missouri to discuss your situation with experienced bankruptcy attorneys. Call (417) 4NO-DEBT, or use the short form below, to schedule your free initial consultation.
Kind Words from our Clients
After working with Ted and his team over the past 5 years of our case, I can honestly say that I would recommend him to anyone who finds themselves in need of a bankruptcy attorney; he was consistently responsive to our questions and concerns, and provided direct and easy to understand information.
Hi, Ted. I just wanted to thank you for helping us. I feel like a huge weight has been lifted from my shoulders. It’s a great feeling! 🙂
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Please note that our attorneys are unable to serve areas outside of Southwest Missouri.