What Is Chapter 7 Bankruptcy?

If you are beginning to think about bankruptcy as a debt relief option, you've probably heard the term "Chapter 7" tossed around. But what exactly does it mean?

In a nutshell, Chapter 7 is a specific type of bankruptcy that is available only to people with very little income or assets. This means that you will have to take a "means test" to see if you qualify for Chapter 7. If taking a test sounds intimidating, don't worry. At Bidwell Tovarez PLLC, our lawyers will guide you through it with empathy and skill. Because we have offices in Royal Oak and Flint, we are available to help you anywhere in Michigan.

What Can Chapter 7 Do For Me?

Chapter 7 provides many different benefits. First of all, as soon as you file, the court will issue an automatic stay on your behalf. This prevents creditors from calling you, garnishing your wages or taking other action against you.

Second, Chapter 7 will eliminate or "discharge" your unsecured debts. Common types of unsecured debts include credit card and medical bills. Erasing these debts alone could potentially turn your life around.

Will I Lose Everything I Own?

This is a common myth. However, the law provides a number of exemptions for those who file bankruptcy. This means that you will be allowed to keep a certain amount of your property. Yes, you will likely be required to liquidate some assets, but certainly not all of them.

Learn More In A Free Consultation With Our Attorneys

To learn more about Chapter 7 bankruptcy, call Bidwell Tovarez PLLC in Royal Oak and Flint at 248-237-3718. You can also contact us online today to arrange a free initial consultation.

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