Bankruptcy

Chapter 7

Phoenix, Arizona

What is chapter 7 bankruptcy?

Often referred to as liquidation or straight bankruptcy, Chapter 7 bankruptcy is used by people who are deeply in debt to stop creditor harassment, stop foreclosure on property, and eliminate credit card debt and medical bills. Chapter 7 bankruptcy allows you to eliminate debt and begin to rebuild your credit in order to give you a “fresh start.”

The Phoenix, Arizona Chapter 7 bankruptcy lawyers at Platt & Westby have provided bankruptcy help to thousands of families like yours to receive debt relief through Chapter 7 bankruptcy. Contact our office to talk to an attorney about whether you qualify for Chapter 7.

What happens in chapter 7?

The first step in filing bankruptcy under Chapter 7 is to file a petition and schedules of assets and debts with the United States Bankruptcy Court. The court will immediately issue a stay stopping all collection proceedings by creditors, including the seizure of property. Your assets are now under the court's protection. The court notifies your creditors, even those who you have managed to keep paying, that you have filed a bankruptcy petition.

A trustee will be appointed by the court to look after the interests of the creditors and will ensure that all your information is in order. The trustee will review your paperwork and the facts and circumstances of your case and will liquidate your non-exempt assets and distribute that money to your creditors. After bankruptcy liquidation, the court will sign an order discharging your debts. From that point forward, those creditors will not be able to contact you further.

Debts you must pay in chapter 7

Chapter 7 does not discharge all that you may owe. Each case is different. You must pay child support, alimony, and current tax debt, as well as student loans (except in rare circumstances). If you file bankruptcy within three months of a spending spree, any luxury items you purchased on credit may have to be paid for in full. This would include furs, boats, motor vehicles, art, cash advances, and travel expenses. Debts incurred by fraudulent means, may also be non-dischargeable. If you are sued and found to have been willfully negligent, you may have to pay damages. If you have been ordered by another court to pay punitive damages, you may have to continue paying.

How long does a bankruptcy case take?

After filing a Chapter 7 Petition, the court will set a hearing date in approximately 1 month. About three months after the bankruptcy hearing, the court will sign an order to discharge debt. For most people, that will be the end of their bankruptcy case. The bankruptcy trustee may, however, keep your case open for many months and sometimes even years. It is important that you keep the court and your attorney advised of your whereabouts during your bankruptcy proceeding and for some years thereafter.

There are many other ramifications of a Chapter 7 bankruptcy. Please review the information provided on our Web site and then contact a Phoenix Arizona Chapter 7 Bankruptcy Lawyer at the law office of Platt & Westby to schedule a free initial consultation to discuss your case.

Platt & Westby is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The information provided here is general and should not substitute for the advice and counsel of an attorney.