Chapter 7 bankruptcy has some great advantages
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Video Transcript:
What are the advantages of a Chapter 7 bankruptcy?
Hi, I’m Darrell Castle and I’m an attorney licensed to practice law in the state of Tennessee and as we conclude this video series on Chapter 7 bankruptcy, I want to reiterate to you some of the advantages of Chapter 7.
First, the advantage is speed – time and speed. You are in and out of it in three to six months. And by that, I mean from the time you file it, it will be completely finished in three to six months, usually a lot less than six months. And that’s not six months of work for you to do. Most of it will be completed by your attorney and you will be finished in three to six months.
Number two – you will be completely out of debt. You will be debt free. You won’t have to make payments on any of your debts. That’s a big advantage.
Now, the exception to that of course is if you have collateralize property – meaning property that you owe money on. If you have a house or car and you want to keep those items, you will have to continue making payments on those items after your bankruptcy is discharged.
Number three – if you have dischargeable debts, then they’re discharged. But if you have non-dischargeable debts then those will also be an exemption. Debts like student loans, recent taxes (personal income taxes less than three years old) and past due child support – none of those will be discharged in Chapter 7 – they’ll all escape Chapter 7 relief. But it is a big advantage to a get a completely fresh start besides those few things.
Now, how can you keep your property in a Chapter 7? Well, you can do that with your home or car if your equity is not excessive and if you’re current on the payments or if you can quickly become current. Those are the ways you can do it.
But one important thing I want to leave you with is to find an attorney. Find the right attorney to do this for you because that’s going to be very important.
Look for someone who has experienced in the bankruptcy world. Look for someone you trust to do proper work for Chapter 7. Sit down and interview that person and say “let me talk to you about what I want to do here and give me your thoughts on it” – that type of thing.
Somebody you can relate to, in other words. Someone who can relate to you. Someone you can ask questions to and feel comfortable talking to. Those are all very very important things.
Someone you can be at ease with. That is who you should look for to represent you in your Chapter 7 efforts.