Michael D. Carper, Attorney at Law

Chapter 7, known as straight bankruptcy, involves liquidating all assets that are not exempt. Exempt property may include cars, work-related tools and basic household furnishings. Some property may be sold by a court-appointed official, a trustee, or turned over to creditors.  Chapter 7 bankruptcy is sometimes called "liquidation" bankruptcy -- it cancels your debts, but you might have to let the bankruptcy court liquidate (sell) some of your property for the benefit of your creditors. ("Chapter 7" refers to the chapter of the federal Bankruptcy Code that contains the bankruptcy law.)

Personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. Also, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or lien on it.

When faced with such a serious financial problem that you feel a need to file for bankruptcy, perhaps the smartest and safest thing to do is to let the professionals guide you through the rough waters.  Please feel free to contact me for a free initial consultation to determine if bankruptcy is right for you.  If necessary, I can help guide you through the bankruptcy process.