Our Novi Law Firm Offers Quick Help With Chapter 7
Chapter 7 bankruptcy is one of the two main forms of bankruptcy available to individual consumers or families. The other common form of bankruptcy is known as Chapter 13 bankruptcy.
Chapter 7 bankruptcy is not available to everyone. And even if you do meet the formal requirements to file Chapter 7 bankruptcy, you may be better off choosing a different method of debt relief.
At the Novi law firm of The Shaw Group, P.C., we have decades of experience guiding southeastern Michigan residents through tough choices about how best to respond to a financial crisis. Led by a bankruptcy lawyer with more than two decades of experience, attorney Edward Shaw, our law firm provides efficient and caring assistance to families who need advice during tough financial times. Contact us today to schedule a free consultation at one of our four offices: in Ann Arbor, Novi, Livonia or Plymouth.
The Basics of Chapter 7 Bankruptcy
Chapter 7 bankruptcy is sometimes called "debt discharge bankruptcy" or "liquidation bankruptcy." After a successful Chapter 7 bankruptcy petition, all eligible debts are discharged, which means the debtor is no longer under obligation to repay them. Eligible debts include credit cards, medical bills and sometimes even a home mortgage.
To qualify as a Chapter 7 bankruptcy filer, a person must meet a "means test" developed by the federal government. The filer must have very high debts compared to income and assets in order to qualify. Actual income does not matter — people with high incomes and low incomes may both qualify — but the size of debts compared to income does matter.
In many ways, Chapter 7 is a true financial fresh start. Although it may take some time to rebuild a good credit history (see the Life After Bankruptcy page for more information), most people find that a Chapter 7 bankruptcy petition does no worse damage to their credit history than has already been done.
If you are looking for additional general information, visit our Chapter 7 Bankruptcy Information Center.
Chapter 7 Bankruptcy and Home Mortgage Loans
The choice of whether to file Chapter 7 or Chapter 13 bankruptcy is especially important when you are worried about past-due mortgage payments, or if your lender has already begun foreclosure proceedings. If this is the case, do not wait any longer to get practical and knowledgeable legal advice on the best way to save your home or walk away with the least damage to your credit history.
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