Chapter 7 Bankruptcy

How a Chapter 7 "Liquidation" Bankruptcy Works

In Chapter 7 bankruptcy, also called "liquidation" bankruptcy, all of your dischargeable debt is completely wiped clean. In exchange, you have to sell all of your "nonexempt" assets and let your creditors share the proceeds. Most people who file for Chapter 7 bankruptcy don't actually own any nonexempt assets, and so they don't end up having to sell anything.

I'm attorney Ben Sissman, and I have more than 30 years of experience helping clients file for Chapter 7 bankruptcy in Memphis, Tennessee. If you are suffering under a burden of overwhelming debt, I can help you file for bankruptcy and I can teach you how to avoid debt and credit problems in the future.

It never hurts to call, and it never hurts to learn about your options in a free initial consultation. Call me today at 901-730-4958 or contact me online. I usually answer my own phone and I look forward to speaking with you.

Some Debts Are Not Dischargeable

When a debt is discharged, that means it has been forgiven, deleted, wiped clean. But not all debts can be discharged. Taxes and student loans cannot be discharged except under fairly extreme circumstances. Secured debts — that is, a debt that is "secured" by a piece of property like a mortgage or car loan — cannot be discharged unless you give up the property that secures the loan.

Chapter 7 Bankruptcy Can Protect Your House and Car

Your home and your car may be exempt assets, up to a certain amount. This means you may not have to sell them in order to have your debt discharged in a Chapter 7 bankruptcy. If you are facing foreclosure, garnishment or repossession, you can use Chapter 7 or Chapter 13 bankruptcy to stop those actions, which gives you time to catch up on back payments.

You can learn more about Chapter 7 bankruptcy during a free initial consultation at my office. To schedule a time, call 901-730-4958 or contact me online.