Rochester Chapter 7 Bankruptcy Attorney Providing Services to Local Clients

Many individuals and households in the United States find themselves struggling to pay their bills and cover expenses for many reasons. Unexpected medical bills, loss of a job, predatory credit lending, and other factors can all lead to financial difficulties. Fortunately, federal law allows for individuals and married couples to get control of their finances by filing for bankruptcy. Though there are many types of bankruptcy, the large majority of consumers file under Chapter 7 of the United States Bankruptcy Code.

If you would like more information on Chapter 7 bankruptcy and to learn whether it is an option for you, call the law office of Rochester Chapter 7 lawyer Karen E. Evangelista today.

How Chapter 7 Bankruptcy Can Help You

Chapter 7 bankruptcy can help struggling consumers in a number of ways. First, when you file, the court will order an automatic stay that will stop all collection efforts by creditors. This stay also serves to stop legal actions against you for money, foreclosures or repossession attempts, certain wage garnishments, and certain account levies for collection. In this way, the automatic stay can provide almost immediate relief from collectors and a rest from your unpaid bills.

If your Chapter 7 bankruptcy is granted, you will be able to discharge many types of debt, eliminating your responsibility to pay those debts. Some examples of debts you can discharge in Chapter 7 include:

• Medical debts;
• Credit card balances and revolving accounts;
• Unsecured loans (except student loans);
• Certain tax liability;
• Unpaid cell phone and utility bills;
• Overdrawn bank accounts;
• Past due rent;
• Most civil court judgments

Though you cannot discharge a mortgage, auto loans, or student loans, discharging other debts can free up funds to cover your nondischargeable debts.

Is Chapter 7 Right For You?

The answer to the above questions depends on many circumstances. For example, in Chapter 7 bankruptcy, a trustee can take certain property to liquidate and pay as much as possible to your creditors. Though there are numerous exemptions under the law that allow you to keep certain property, Chapter 7 may not be the best option if you own significant property or assets. Additionally, if your income is too high, you may not qualify for Chapter 7. An experienced lawyer will thoroughly examine your situation and help you determine whether pursuing bankruptcy under Chapter 7 is the best option for you.