By: Darrell Castle

If you have unsecured debt you can’t pay, then you may want to consider Chapter 7 bankruptcy.

Unsecured debt means debt not backed by collateral like credit card and medical bills. There’s no property the creditor can take from you if you fall behind on these payments.


A Chapter 7 bankruptcy allows you to discharge those unsecured debts. You can even keep your property – house and car (secured debts) – as long as you’re current on those payments and your equity doesn’t exceed state exemptions.

If you’re not current on your house or car payments and want to keep that property, you can file for Chapter 13 bankruptcy, which you can learn more about here.

To file for Chapter 7 bankruptcy, you have to pass the means test. A means test is a formula based on your income and expenses. It’s purpose is to keep people who actually CAN afford to pay a portion of their debts from filing for bankruptcy, or direct them into Chapter 13. This test will be completed in the office.

Chapter 7 comes with some very good benefits. If you’re behind on your bills and in debt, then stress and worry can really begin eating away at your quality of life. A Chapter 7 bankruptcy allows you to confront those problems head on and rid yourself of them.

After the bankruptcy process is complete – which for Chapter 7 is a few short months – then you have a clean slate. You have a fresh start!

This fresh start provides you with a great opportunity to re-establish and rebuild your finances the right way, including your credit score!

At Darrell Castle & Associates, we’ve helped people through hard financial times for decades, and we’ve received multiple Client Distinction Awards along the way for client satisfaction.

We don’t want to only help you complete the bankruptcy process, but we want to provide you with the right tools to succeed afterwards. That’s why we proudly use Dave Ramsey’s Debtor Education course. This video course teaches you basic financial principals that everyone should know, but not in your typical boring fashion. It’s entertaining and will make you laugh!

If you’re struggling financially and want to talk to someone experienced about your options, then our free financial consultation is perfect for you.

Call (901) 327-2100 to schedule your appointment today, or fill out one of the contact forms on this page to have someone contact YOU!