A Chapter 7 bankruptcy filing serves many purposes including stopping creditor harassment and eliminating debt. The main purpose of a Chapter 7 bankruptcy filing is to give a debtor who is burdened with overwhelming debts that he or she cannot pay the opportunity to eliminate those debts and get a fresh start to rebuild his or her financial well-being. In most Chapter 7 bankruptcy filings in South Jersey, the debtor retains all of his property while getting rid of most, if not all, of his or her debts.
Reasons Why You Should Consider a
Chapter 7 Bankruptcy Filing
- Stop Creditor Harassment
A Chapter 7 bankruptcy filing will immediately end creditor harassment. When a bankruptcy case is filed, the Bankruptcy Code provides for an automatic stay that prevents creditors from contacting the debtor in an attempt to collect a debt. The threatening telephone calls, letters, and other forms of contact my cease as soon as the creditor receives notice of your bankruptcy filing.
- Protect Your Property
A Chapter 7 bankruptcy filing protects your property from being seized by creditors. Creditors cannot continue actions to repossess, foreclose, garnish, levy, or otherwise seize the debtor’s property to repay a debt without approval from the bankruptcy court. In most Chapter 7 cases filed in New Jersey, the debtor retains all of his or her property.
However, if an asset was used as collateral for a loan (i.e. mortgage or car), the debtor must continue to pay the debt if he or she wants to retain the asset. In the case of household goods the debtor already owed but used as collateral for a personal loan, the lien can usually be voided so that the debtor retains the household goods while eliminating the debt.
- Discharge Debts
A Chapter 7 bankruptcy filing wipes out most, if not all, of the debtor’s unsecured debts including, but not limited to, medical bills, credit card debt, personal loans, payday loans, and other unsecured debts. If the debtor wishes to surrender the collateral for secured loans (i.e. car loan, mortgage, etc.), the debt will also be discharged through the bankruptcy so that the creditor cannot claim a deficiency (the amount owed after liquidating the collateral) against the debtor.
- Rebuild and Recover
Once you have eliminated your debt, you can begin to rebuild your financial well-being by improving your credit rating, saving money, and setting and reach financial goals that provide for your future. A Chapter 7 bankruptcy filing gives the debtor the much-needed relief from debt to overcome a financial problem and work toward a better future.
Contact an Experienced Mount Holly
Personal Approach, Professional Service, Affordable
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans, and foreclosure. We represent clients in Burlington County and throughout South Jersey.
Contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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