Bankruptcy Attorney FAQ
Q: “WHAT IS CHAPTER 7 BANKRUPTCY”?
Chapter 7 Bankruptcy is a complete liquidation of your assets and debts. With few exceptions, all of your debts and contractual obligations are wiped out in Chapter 7 Bankruptcy.
The following items are exempt from Chapter 7 bankruptcy:
- Real property, including co-op or mobile home, to $15,000 Disability
- Illness or unemployment benefits
- Life insurance payments for person you depended on, needed for support.
- Life insurance policy with loan value, in accrued dividends or interest, to $8000
- Unmatured life insurance contract, except credit insurance policy
- Alimony, child support needed for support
- ERISA-qualified benefits needed for support
- Animals, crops, clothing, appliances, books, furnishings, household goods,musical instruments to $400 per item, $8000 total
- Health aids
- Jewelry to $1000
- Lost earnings payments
- Motor vehicle to $2400
- Personal injury recoveries to $15,000 (not to include pain & suffering or pecuniary loss) Wrongful death recoveries for person you depended on
- Crime victims’ compensation
- Public assistance
- Social Security
- Unemployment compensation
- Veterans’ benefits Implements, books & tools of trade to $150
Q: WHAT DEBTS ARE NOT DISCHARGEABLE?
With some exceptions, the following debts remain even after bankruptcy:
- Child support & alimony
- Student loans that became due less than 7 years ago
- Federal and state income tax obligations less than 3 years old
- Debts for restitution from criminal convictions and drunk driving
- Debts the bankruptcy court decides where from intentional acts, fraud or wrongdoing (e.g., lying on your bank loan application).
Q: HOW LONG DOES BANKRUPTCY STAY ON MY CREDIT REPORT?
Information about your bankruptcy can remain on your credit report for up to 10 years.
Q: How long does it take to file bankruptcy (Chapter 7)
- Most cases can be filed in about 7 days.
- A final discharge from the bankruptcy court usually takes between 60 to 120 days.
Q: What is the cost of the filing fee