Chapter 7 Bankruptcy

Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is the most common type of bankruptcy case for an individual or husband and wife. Chapter 7 is also referred to as “Liquidation” because a Bankruptcy Trustee is appointed to the case to determine if there are nonexempt assets available that could be liquidated to pay creditors. Chapter 7 is also referred to as a “Fresh Start” because it discharges or eliminates most debts so that a person does not have to pay them.

A key benefit of Chapter 7 Bankruptcy is that when the case is filed, an Automatic Stay is instituted in most cases to prevent the collection of debts, such as law suits, garnishments, and debt collectors. When a bankruptcy case is filed the Automatic Stay directs that all efforts to collect a debt, except for very limited types of debts, must stop. This means that the telephone calls from collection agencies, letters from attorneys, and other collection efforts will cease immediately after the filing of the bankruptcy case in most cases.

Having an experienced attorney like Dennis H. Babiniec represent you in your bankruptcy case can be a key resource to you. In order to file for Chapter 7 Bankruptcy you must be eligible under a form called the Means Test and under an abuse of process analysis. Also, an experienced attorney can analyze your bankruptcy estate to determine what assets may be nonexempt. Only nonexempt assets are liquidated by the Chapter 7 Trustee. In most of our cases, there are not enough nonexempt assets to justify liquidation by the Trustee, therefore becoming a “no asset” case and our client is able to keep all of their property (i.e. their house, car, retirement, and personal property). In cases where there are enough nonexempt assets to be liquidated by the Trustee, an analysis is performed by the attorney so that you can determine that you will substantially benefit from the Chapter 7 case by discharging or eliminating much more debt than the value of the nonexempt property. Also, by having an attorney like Dennis H. Babiniec represent you, you can be prepared for the issues that apply to your case and not be surprised in court because you did not expect an issue to come up.

There are many aspects of Chapter 7 Bankruptcy that appear to be routine. But just like in building a house, there are skills and methods that are designed to produce the best results for our clients. Taking “short cuts” is a common way that “low fee” attorneys who typically are less experienced or paralegal services who are not licensed to practice law, market themselves to compete for bankruptcy clients. Just like if a house is built on a faulty foundation, it might not appear to be a problem for a long time, but when it does become noticed, it can be a major problem.  Chapter 7 single cases start at $895.00 + Court filing fee, so competent legal representation is available for a reasonable price. Payment plans can also be arranged in order to break up the fees into affordable payments leading up to the filing of the case. In a Chapter 7 case however, the fees do have to be paid before the filing of the case because of ethical considerations that apply.

Contact Dennis H. Babiniec P.C. today at 303-451-9110 to schedule your free consultation, or browse our website for more information regarding Chapter 7 Bankruptcy, Chapter 13 Bankruptcy or to read our Bankruptcy FAQs.

If you are looking for information regarding divorce, family law, legal separation or support and custody, please visit our Divorce website.

We are a debt relief agency - a law firm providing legal representation to people who file for bankruptcy relief under the bankruptcy code. The content on this site is intended for general information only and is not to be construed as legal advice. Please consult Dennis H. Babiniec, P.C. for advice specific to your needs.

Dennis H. Babiniec, P.C.  |  Northglenn and Thornton, CO Bankruptcy Attorney  |   BBB Accredited, A+ rating and over 30 years of experience
Bankruptcy, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Debt Reorganization  |  Serving The Denver Metro Area, Including Northglenn, Thornton,
Westminster, Broomfield, Commerce City, Federal Heights, Wheat Ridge and Arvada, CO

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