Dedicated, Supportive Debt Solutions

Understanding Chapter 7 Bankruptcy

Bankruptcy can be a scary concept. Over the years, the word bankruptcy has earned a negative stigma. For that reason, many people feel that filing for bankruptcy means they somehow failed. And creditors don’t hesitate to make them feel that way. Creditors work hard to make sure bankruptcy gets a negative reputation because bankruptcy prevents them from making a profit on your escalating interest fees and penalties.

At Robert W. Raley - Bankruptcy Lawyer, we know that bankruptcy is not bad. In reality, bankruptcy is merely a method for responsible and honest people to get out from under their growing debt. It is a tool to help people – people just like you – level the financial playing field and regain control of their finances, especially after an injury or unexpected illness.

Most often consumers use two types of bankruptcy. Chapter 13 bankruptcy consolidates your debts into manageable payments and Chapter 7 bankruptcy gives you a fresh start.

The Fresh Start Bankruptcy

Chapter 7 bankruptcy, commonly referred to as a fresh start or liquidation bankruptcy, can be a very useful tool for those who are able to successfully file. It liquidates a debtor’s nonexempt and unnecessary assets (such as a second vehicle or home, cash, family heirlooms and expensive nonessentials) to pay creditors and discharges much – sometimes all – of the remaining debt. In reality, because the liquidation does not force you to get rid of things you need (such as appliances, furniture, and even vehicles and jewelry up to a certain value), you may not have to part with much, if anything.

A Chapter 7 fresh-start bankruptcy is truly a fresh start, but it does not always work for everyone.

There are certain debts that are considered nondischargeable in this type of bankruptcy and will not be erased. These include student loans, debts from court judgments related to wrongful injuries or theft and divorce debts, such as alimony and child support. If these are the primary debts plaguing you, a Chapter 13 bankruptcy may be right for you.

How To Qualify For A Chapter 7 Bankruptcy

If the majority of your debts are from things such as credit cards and medical bills, and your monthly income does not provide you the means to pay your debt, a Chapter 7 fresh-start bankruptcy may be the right choice for you. There is now a test that can help determine your eligibility. But, with new bankruptcy laws that began in 2005, the process to qualify and file for a Chapter 7 fresh-start bankruptcy has become much more complex. Therefore, it is vital to achieve a successful result that you find a skilled and experienced lawyer who is dedicated to bankruptcy law.

Contact Us Today

There is a solution to your stressful debt situation. Through a Chapter 7 fresh-start bankruptcy, Robert W. Raley - Bankruptcy Lawyer can help you end your financial nightmare and put you back on the road to becoming debt free. With over 43 years of experience, our bankruptcy attorney has helped thousands of Louisiana families reclaim control of their financial futures.

Call us today at 318-747-2230 or set up your free consultation to discuss whether bankruptcy might be right for you. You can also schedule your consultation by sending us an email.

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.