West Palm Beach Bankruptcy Lawyer
Chapter 7 Bankruptcy and You
Chapter 7 bankruptcy is the most common type of bankruptcy in the United States. Under Chapter 7, a person’s debts are liquidated. This is also known as straight bankruptcy. When filing under Chapter 7, the individual is allowed to keep certain properties which are exempt from being sold to repay creditors.
While most types of debt can be settled by filing for bankruptcy under Chapter 7, there are a few that cannot. Some common exceptions to Chapter 7 bankruptcy include:
- Child support payments
- Income taxes which are less than 3 years old
- Property taxes
- Some student loans
- Fines imposed by a court for crimes which the debtor committed
Chapter 7 bankruptcy also does not cover spousal support or property settlements from divorces.
In most cases, bankruptcy discharge will stay on the debtor’s credit report for up to 10 years. While this information is on your credit report, it may make credit somewhat less attainable or the terms of credit less favorable. However, this is not the only factor that is considered for credit.
Knowing whether or not to file for bankruptcy under Chapter 7 depends on more than just your creditworthiness and the likelihood of receiving the discharge. There are many factors which must be considered. If your credit score is dropping, it may be a good idea to consider bankruptcy before it is too late.
Contact a West Palm Beach Bankruptcy Lawyer
For more information on bankruptcy and to see if it is right for you, contact the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates at 561.353.2800.
