The necessity to file chapter can come shortly and abruptly on account of a critical life occasion similar to a critical medical analysis that ends in massive medical payments or being terminated or laid off from a job that ends in a lack of earnings.  Many people have skilled this because of the Coronavirus (COV-19), which has prompted these people to really feel as if they’re “drowning in debt.”

If a person or household is ready the place they’re important debt and can’t pay their payments, submitting a Chapter 7 chapter could also be an acceptable step to get them a “recent begin” financially.


Contemporary Begin

A Chapter 7 bankruptcy is sometimes called a liquidation chapter as a result of a chapter trustee is assigned to liquidate non-exempt property for the good thing about collectors.  The debt that’s not happy by the liquidation is mostly discharged, that means that the particular person doesn’t need to pay these money owed any longer and collectors won’t go after the person any additional.  Due to this fact, on the shut of the chapter, the particular person is given a “recent begin” financially to begin over once more.

It is very important observe that there isn’t any restrict to the quantity of debt that an individual has on the time of submitting a Chapter 7 chapter.  That is in contrast to a Chapter 13 bankruptcy, the place as a way to be eligible to file, the person is proscribed within the quantity of debt she or he has.



As mentioned above, when an individual recordsdata a Chapter 7 chapter, a trustee is assigned to liquidate the person’s property.  There are limits that stop a trustee from promoting all of a person’s property in a Chapter 7 chapter referred to as exemptions.  Exemptions present protections to a number of of a person’s property together with however not restricted to at least one’s home, automotive, and home items.  Earlier than submitting, you will need to communicate with an lawyer to debate what property is protected by both the state or federal exemptions and what property is topic to being offered within the chapter.



A Chapter 7 chapter can typically take solely three to 4 months earlier than the Chapter Court docket points the discharge order – discharging the person’s debt within the chapter.  That is considerably faster than a Chapter 13 chapter which may final upwards of three to 5 years.   What this implies is that an individual shall be on his or her solution to this monetary “recent begin” in a short time.


Computerized Keep

Like in all bankruptcies, an automated keep is put into place instantly upon submitting a Chapter 7 chapter.  An automated keep requires collectors to cease all assortment actions similar to a wage garnishment, financial institution levy, or collections calls.  That is extraordinarily essential for people in Chapter 7 bankruptcies to permit them a break from these assortment issues and deal with the chapter and getting them the recent begin that they’re in search of.


Contact Us for Assist

The choice on whether or not to file chapter is a troublesome one and the method for submitting chapter could also be complicated and time consuming.  We wish to assist advise you thru these exhausting instances which were introduced by Coronavirus and talk about the choices accessible to you.  Due to this fact, you probably have any questions or wish to talk about the advantages of submitting a Chapter 7 chapter with certainly one of our attorneys, please go to our website or contact certainly one of our legal professionals at (973) 890-0004.


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