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CHAPTER 7

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Chapter 7 bankruptcy is a legal process designed to help individuals eliminate certain types of debt and obtain a fresh financial start. It is one of the most common forms of consumer bankruptcy and is often used by individuals facing overwhelming credit card debt, medical bills, personal loans, repossessions, wage garnishments, or financial hardship caused by unexpected life events.

In a Chapter 7 case, qualifying debts may be permanently discharged, meaning you are no longer legally required to pay them. The process is designed to give honest individuals an opportunity to rebuild financially and move forward without the constant pressure of overwhelming debt.

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How Chapter 7 Works

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A Chapter 7 bankruptcy begins with the filing of a petition in federal bankruptcy court. Once a case is filed, an automatic stay immediately goes into effect. This legal protection can stop:

• Wage garnishments

• Collection calls

• Lawsuits

• Bank levies

• Repossessions

• Foreclosure actions

After filing, a trustee is assigned to review the case and a brief hearing known as the “Meeting of Creditors” is scheduled. In many Chapter 7 cases, clients are able to keep their property through available bankruptcy exemptions.

Most Chapter 7 cases are completed within several months, after which qualifying debts may be discharged by the court.

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Common Debts Chapter 7 May Eliminate

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Chapter 7 bankruptcy may help eliminate debts such as:

• Credit card debt

• Medical bills

• Personal loans

• Payday loans

• Certain judgments

• Utility balances

• Deficiency balances from repossessions

Some debts, however, may not be dischargeable, including certain taxes, student loans, child support, and spousal maintenance obligations.

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Is Chapter 7 Right for You?

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Every financial situation is different. Chapter 7 bankruptcy may be appropriate for individuals who:

• Are struggling with overwhelming debt

• Have fallen behind on bills

• Are facing collection activity or garnishments

• Need a financial reset

• Qualify under the bankruptcy means test

At B. Hicks Law, we help clients understand whether Chapter 7 bankruptcy is the right option for their situation and guide them through the process from start to finish.

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A Fresh Start

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Financial difficulties can happen to anyone. Chapter 7 bankruptcy exists to provide relief and a path forward. Our goal is to help clients navigate the process with clarity, professionalism, and confidence.