Chapter 7 Fresh Start Bankruptcy

Chapter 7 Fresh Start Bankruptcy may be used to eliminate credit card debt, medical debt, deficiencies after a foreclosure and/or repossession.  There are other debts dischargeable in a Chapter 7, but credit cards, medical and deficiencies are the most common.  Clients who are defined as “Debtors” in the Bankruptcy Law need to be current on car payments and house payments.  Because Debtors are required to “reaffirm” debts on their car(s) and house, or to “surrender” their car(s) or house within a certain time limit.  If the Debtors surrender property, they will owe nothing for the surrendered property after the Bankruptcy Court signs the Debtors’ Discharge.  The Discharge will be signed between 5-6 months.

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