Chapter 7 Petitions for Consumer Debt
Chapter 7 bankruptcies give debtors a fresh start by discharging nonexempt debts and eliminating liability for many existing financial obligations. Unlike a Chapter 13 bankruptcy, there is no repayment plan; instead, creditors are paid from the proceeds of available “nonexempt” assets that the debtor owns. In most cases, however, a debtor’s assets are protected by “exemptions.” South Carolina law provides generous exemptions to protect assets so that a debtor will be better able to have the assets needed to make a “fresh start” at the conclusion of a Chapter 7 case.
While some debts, such as student loan obligations, are usually not eligible for a discharge in a Chapter 7 case, most consumer, unsecured debt is dischargeable. If a debtor qualifies to file a Chapter 7 bankruptcy petition, bankruptcy laws can help the debtor with the following issues:
- Immediately stop harassing collection calls
- Eliminate overdue medical bills
- Eliminate certain tax problems
- Eliminate certain court judgments
- Release frozen bank accounts
- Stop harassing collections calls
Chapter7 bankruptcy may be the lifeline you need to start over. I will thoroughly review your circumstances and assess whether this type of relief is available to you.
I offer free consultations for anyone considering filing bankruptcy and will help you determine whether a bankruptcy filing is appropriate and what type of bankruptcy will work best for you. Please call 803-799-0425 or contact me online to schedule a consultation.
As a bankruptcy law firm that represents debtors, the Law Office of Barbara E. Brunson is classified as a debt relief agency under U. S. Bankruptcy Code.