A Chapter 7 bankruptcy is designed to help individuals get out from under bills they simply can’t afford to pay and gives them a much-needed fresh start. In a Chapter 7 bankruptcy, there is no monthly payment made to the court or trustee, making it a viable option for anyone looking to break free from a financial crisis.
Keep Your Property with Chapter 7 Bankruptcy
Most people worry that filing for Chapter 7 bankruptcy will mean that they’ll lose their property. This is, thankfully, not the case for the majority of individuals. Chapter 7 is designed to settle your debts through the sale of any property valued above certain limitations. The law provides the for certain property to be claimed exempt and retained free and clear of your debts.
To keep property with liens against it often requires continuation of the monthly payments, although most household goods can be kept without making these monthly payments. Filing for Chapter 7 bankruptcy can alleviate much of your financial burden and make it easier to remain current on minimum monthly payments. This makes it an attractive option for people looking to file for bankruptcy and keep their property throughout the process.