Chapter 7 Bankruptcy
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Filing for bankruptcy is not an easy decision. But if you are inundated with calls from creditors demanding payments and your mailbox is filled with bills, bills, and more bills, a Chapter 7 bankruptcy may be your best solution. It all depends on the debts that can be discharged, those that may be discharged, and those that cannot be discharged.
Debts that are discharged
A Chapter 7 bankruptcy, commonly known as liquidation, is usually the quickest and easiest form of bankruptcy for individuals, married couples, partnerships, and corporations. You are allowed to keep some of your property, known as exempt property, and the rest of your property, known as non-exempt property, is sold by a court-appointed trustee, who then uses that money to pay your creditors. And even if you do not have non-exempt property, you may still proceed with a Chapter 7 bankruptcy to discharge many of your debts, including—
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Debts that may be discharged
The following debts may also be discharged—
- Willful and malicious injuries to others
- Embezzlement
- Debts incurred by fraud or dishonesty
- Debts arising from breach of fiduciary duty
For these debts not to be discharged, creditors must specifically request that the court make a determination. Otherwise, these debts will be discharged.
Mortgages and other secured debt can be discharged if you surrender the collateral.
Debts that cannot be discharged
Some debts are not dischargeable in bankruptcy, including—
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Find out what is best for you
Determine whether a Chapter 7 bankruptcy is right for you. Speak to a Dietrich Law Firm bankruptcy attorney. We have offices in both Lansing and Owosso, Michigan, and your initial consultation is free.
