Richard J. Shurtz, Attorney at Law

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Chapter 7 bankruptcy might be the perfect remedy

Some consumers in Washington might say that the worst part of having overwhelming debts is the constant harassment of creditors who call at all hours. They may not realize that filing for Chapter 7 bankruptcy can put an immediate end to those calls. Under the bankruptcy law, an automatic stay comes into effect that prohibits creditors from asking for payments. Consumers may also find comfort in learning that it is a myth that they will lose their homes and cars when they file for personal bankruptcy.

If the equity value of their homes is not too high, and foreclosure action is not in effect yet, Chapter 7 filers can usually keep their homes, and the value of their cars will determine whether they are exempted. Federal and state exemptions typically also protect the filer's tools of his or her trade, along with household goods. The belief that all assets are liquidated and sold at auction is not necessarily true.

Consumers who file for Chapter 7 bankruptcy can have all their unsecured debt discharged. This means that credit card and medical debt obligations will be removed, making it easier to maintain payments such as mortgages and auto loans. With the removal of those ever-spiraling debts, it might be easier to cope with the remaining secured debt burden.

Washington consumers may have questions about how to qualify for Chapter 7 bankruptcy and the Means Test through which they might have to go. An experienced bankruptcy attorney can provide answers and explain the bankruptcy process. However, before filing for bankruptcy, the lawyer will likely assess the individual's circumstances and explain other available options that might resolve the issues.

Source:, "Top 10 Benefits of Chapter 7 Bankruptcy", Accessed on Oct. 19, 2017

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