CHAPTER 7 BANKRUPTCY
In a Chapter 7 bankruptcy, all your debts are wiped out by court order, except some taxes, some student loans, and alimony or child support. There are some other exceptions to discharge which we can tell you about. You also have to keep paying on your home mortgage or car loan if you want to keep these items. Normally all your unsecured debts are eliminated while you keep paying your secured debts. This means that credit card debts, bank loans, medical bills, utility bills, business debts, and even bad checks are commonly discharged in a Chapter 7.
Most people will not lose any property, or personal possessions, in a Chapter 7 case. For example, in Minnesota, you can have up to $450,000.00 worth of home equity without losing it in bankruptcy. You should consult with my office to determine whether your property is exempt.
Call my office at (952) 831-1995 and we’ll be ready to tell you how a Chapter 7 case could work for you.