London Chapter 7 Bankruptcy Attorney
The average American carries over $6,000 in credit card debt, and this number grows as income increases. For some households, this figure is much higher, and credit cards are only one source of debt. Many families face unpaid medical bills and outstanding balances on personal loans, and the total monthly debt load can become too much to bear. The pandemic has thrown thousands of people out of work and into hospitals, and while government programs have provided some assistance and kept people from being kicked out of their homes, personal debt has not gone away but has only increased.
As part of our commitment to the people of London and Southeast Kentucky, the Cessna & George Law Firm helps individuals and families struggling with debt make a fresh start through a Chapter 7 bankruptcy proceeding. Chapter 7 allows people who have racked up too much debt and are struggling to make ends meet to clear the decks and start fresh without the burden of overwhelming debt.
If you feel like you are drowning in debt and need a lifeline to pull yourself out of a financial hole, call the London Chapter 7 bankruptcy attorneys at Cessna & George Law Firm to see if Chapter 7 is right for you. Learn more about Chapter 7 below, and give us a call with your questions or to get started today taking back control of your finances.
Chapter 7 Stops Collections
When you file your Chapter 7 petition with the court, the court implements the “automatic stay” which tells your creditors they must immediately halt any collection activities, including foreclosures, repossessions, sending letters, calling you, garnishing your wages, putting a lien on your property, or suing you. The automatic stay can be a great relief if you have been experiencing constant harassment about your bills or were in danger of imminent legal action being taken against you.
Chapter 7 Discharges Debt
In Chapter 7, a consumer’s unsecured debts are eliminated. People can emerge from Chapter 7 entirely debt-free, depending on the types of debts they owe. Following are examples of the kinds of debts that can be wiped away in Chapter 7:
- Credit cards
- Medical bills
- Personal loans
- Rent and utilities
- Civil claims and judgments
- Bills in collections
Chapter 7 doesn’t eliminate every kind of debt, however. Child support obligations are not discharged, and neither are most tax debts or student loans (some federal income tax debts can be discharged, and student loans can be discharged in certain cases of hardship). Also, if your debt is secured by collateral, such as a home or a car, then discharging the debt doesn’t keep that property safe from being foreclosed on or repossessed. Other options might be available to you for these other kinds of debts. Also, discharging your unsecured debt can free up your disposable income so you can more comfortably meet these other obligations. Call our office to analyze your situation and see if Chapter 7 makes sense for you.
How Chapter 7 Works
If your monthly household income is below the state median, then you qualify for Chapter 7 relief. If your income is above this threshold, then your income and expenses will have to be means-tested to determine whether you are eligible to file under Chapter 7. We can help you through this step to maximize your eligibility.
When you file for Chapter 7, you list all your assets and what they are worth. In theory, the bankruptcy trustee assigned to your case could sell your assets to pay your creditors before the court discharges any leftover debts. However, both the federal Bankruptcy Code and Kentucky statutes provide numerous ways for you to exempt your property from this process, keeping it safe from the bankruptcy trustee. We’ll walk you through the exemptions and advise you on whether the federal or Kentucky exemptions are more favorable in your case. Our goal is to file a “no-asset” case, where the bankruptcy trustee does not sell any of your property that you wish to keep.
Although Chapter 7 is supervised by the courts, it works more like an administrative proceeding, and most Chapter 7 filers never see the inside of a courtroom. The only meeting you will likely be required to attend is called the section 341 meeting of creditors. Although your creditors could come to this meeting and question you about your assets or ability to pay your debts, they rarely do. Typically, this meeting only lasts about five minutes while the bankruptcy trustee looks over your paperwork to ensure it is filled out correctly. We’ll come to this meeting with you and advise and represent you as needed.
Chapter 7 comes with a debtor education course that will give you tools and strategies to better handle your finances and avoid debt problems in the future. At the end of the process, your unsecured debts are discharged, wiping the slate clean so you can make a fresh start.
Get Help Today. Call Cessna & George Law Firm in London to Learn About Chapter 7 Bankruptcy Relief
The Chapter 7 attorneys at the Cessna & George Law Firm are with you at every step. We’ll help you qualify for Chapter 7, advise you on when to file and what to do and don’t do before you file, take you through the bankruptcy exemptions for a no-asset case, represent you in any meetings with the bankruptcy trustee, handle any communications with your creditors, and address any issues that arise during your bankruptcy.
If you are dealing with debt issues and are worried you can’t keep up, don’t wait until creditors start taking legal actions against you, and don’t waste time worrying and stressing over a problem that can be solved. Call the Cessna & George Law Firm in London at 606-770-5400 for a free consultation with an experienced and successful Chapter 7 bankruptcy lawyer who can help you find effective debt relief.