L. PHILLIP DEW
Attorney at Law
7660 S. 800 W. (Holden St.)
Midvale UT 84047
Telephone 801-566-3322
Fax Number 801-566-2422
E-mail: dewatt@xmission.com
Web Site: www.dewlaw.com
What is a Chapter 7 "Fresh Start" Bankruptcy? "Chapter 7" is the part of the Bankruptcy Code that deals with liquidation. (It really is the 7th Chapter in the book). In a Chapter 7 case, you receive a "discharge" of your debts. "Discharge" means that the debt is released and you don't have to pay for it, and creditors can't take any further action against you.
Does a Chapter 7 wipe out all of my debts? Some debts aren't discharged in Chapter 7. You can't wipe out student loans, alimony, child support, debts caused by fraud, criminal action, DUI, or malicious or intentional injury. New taxes can't be discharged; some taxes older than three years can be discharged if you meet certain conditions. With your secured creditors, you may decide whether you want to keep the collateral and keep making payments, or you can give it back and owe nothing. Generally speaking, there are three types of debts. Unsecured debts can usually be discharged. These include credit cards, medical bills, paycheck loans, and other debts for which there is no collateral. Secured debts are those kinds of debts for which there is collateral. For example, when you bought your house or car, you signed an agreement that said that if you failed to make payments, the creditor can take the house or car back. Debts owed to furniture stores are often secured by the furniture. Sometimes some creditors won't lend you money unless you fill out a list of the things you own and agree that they can take those things from you if you fail to pay. Sometimes some of the agreements are valid, but often due to technicalities those agreements are not valid. If a debt is properly secured, when you file a Chapter 7 you must decide whether to keep the stuff and continue to make payments on it, or you can give it back and owe nothing. The third kind of debts are non-dischargeable debts, which are described earlier in this paragraph. You cannot bankrupt out of them in a Chapter 7. But you can usually deal with most of them in a Chapter 13.
Do I lose all of my belongings if I file a Chapter 7? Not usually. Most of the belongings needed for daily life are exempt, which means they can't be taken by the bankruptcy court, or by anyone else for that matter. On non-exempt belongings and property, if there is a lien or mortgage on it and you don't have too much equity, the bankruptcy court won't take it. At your free consultation, we will go over your situation and let you know what, if anything, you may lose if you file a Chapter 7. Most people lose nothing.
If I'm in debt now but I previously filed a Chapter 7, how long must I wait before I can file it again? You must wait
eight years from the last Chapter 7 filing date to file again. But even if you can't do a Chapter 7 now, you can do a Chapter 13 now to protect yourself from creditors.
If you have questions about your specific situation, contact us anytime. We are happy to answer your questions and schedule e FREE CONSULTATION to meet with you. 801-566-3322
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