St. George, Utah Chapter 7 Bankruptcy

How Can Chapter 7 Bankruptcy Help Me?

Chapter 7 wipes clear all of your unsecured debt. This includes credit cards, payday loans, medical bills, bounced checks, vehicle repossessions, and broken leases, just to name a few. It also puts a stop to all lawsuits, wage garnishments, and everything to do with debt collection activity. Chapter 7 is the way to go if you are okay with letting go of your collateral-based debt, like cars and furniture that was purchased on a loan.

What Doesn't Chapter 7 Bankruptcy Help With?

If you are behind on payments, Chapter 7 does not help you keep your house or car. That is what Chapter 13 is for. Chapter 7 will not, in most cases, clear out tax debts, and it will not eliminate child support, alimony, and debts owed to governmental agencies (including criminal court fines).

What Could I Lose By Filing Chapter 7?

Filing Chapter 7 requires some type of property that the trustee can take and sell. This is how they pay off the settled amount of your debt. These assets may include valuable electronics like high-end televisions, vehicles worth over $3000 in equity, jewelry, firearms, antiques and collectibles, cash, and investments including bonds. There is a chance they may take your home, but they will only do that if it has over $51,000 in equity – or, in the case of a married couple that lives in the home together, $101,000 (2024 numbers).

What Can I Keep When Filing Chapter 7 Bankruptcy?

For the most part, you will be able to keep your personal property. This includes your clothing and the furnishings and appliances in your home. Bankruptcy law protects you from these being taken. The best way to find out what you can expect in your particular case is to meet with an attorney. I have filed many, many cases and am able to tell my clients clearly what to expect – and it is often better than they expect.

Wondering how to get started with a Chapter 7 bankruptcy? Easy answers are a click away. Contact Us.