CHAPTER 7

Often called a “fresh start” bankruptcy, Chapter 7 is designed to eliminate most types of unsecured debt obligations, such as credit cards, medical bills, and deficiencies from repossessions. Chapter 7 bankruptcies may also eliminate certain types of taxes, judgment liens, and can sometimes even discharge student loans.

Chapter 7 cases are also called “liquidation” bankruptcies. This title comes from the fact that a Chapter 7 Trustee has the power to liquidate certain types of assets to pay creditors. Deciding to file a Chapter 7 case requires a careful examination of the client’s situation so as to avoid the possibility that the client could loss a valuable asset – such as a tax refund, inheritance, or interest in real property. At Speckman Law Firm, we always engage in pre-bankruptcy planning to manage this issue – something many lawyers and law firms fail to adequately do. We never rush this process – we work with our clients to ensure that the bankruptcy process runs smoothly and with the least impact on the client’s life as possible.