Level One Legal Services, P.C.

Ann Arbor Bankruptcy

What is a Chapter 7 Bankruptcy?

Bankruptcy known as Chapter 7, this type of bankruptcy is commonly referred to as a "simple" or "straight" bankruptcy. It is available if the majority of your debt is consumer debt, (incurred primarily for a personal, family or household purpose). This generally includes credit cards, medical bills and other unsecured debt. A Chapter 7 bankruptcy seeks to have these debts discharged, or eliminated. The Trustee, appointed by the Court to oversee your bankruptcy, will evaluate your belongings to determine if you have any non-exempt property that may be liquidated, or sold, to satisfy any of your debts. Exempt property, or that which may not be sold, includes your home, up to a specified amount, your car, certain tools, up to a certain value of personal jewelry, household goods, appliances and a number of other specific, approved items.

The entire process, from meeting with your Chapter 7 bankruptcy attorney in Ann Arbor for the first time, until the discharge, usually takes only about three months. You are only required to appear for one court hearing, in most instances. Following this hearing, the Trustee will determine if there are any non-exempt belongings available to sell, with the proceeds distributed among your creditors to pay toward your debt. After the proceedings, the court will discharge you from all your dischargeable debts, providing you with a fresh financial start.

The Benefits Filing of Bankruptcy in Ann Arbor

• Financial relief - eliminating your unsecured debt is the single greatest advantage of filing a Chapter 7 bankruptcy. The discharge afforded by a Chapter 7 means you will no longer have to pay those debts that are dischargeable such as credit cards, medical bills, unsecured loans, judgments and garnishments. You can obtain a "fresh start" by freeing yourself from the overwhelming burden your debt has brought you. Bankruptcy creates a safe-haven for you from insurmountable financial challenges while allowing you to start over.
• The automatic stay - once we file your bankruptcy Petition, you will benefit from immediate relief. The Court will enter an Automatic Stay order to stop creditors from all collection efforts against you. A creditor cannot pursue any further action to collect, whether a judgment has been entered against you or not. A creditor cannot garnish your wages, go after your house, seize your car, or cut off your utilities or welfare benefits.
• Keep most of your personal property - most of your personal belongings will be exempt from liquidation, or sale, in your bankruptcy. You should also be able to retain ownership of your home and car, provided your mortgage and car payments are current.
• Stop collection efforts - free yourself from the anxiety and dread of dealing with the collection efforts of your creditors such as the phone calls, collection letters, threats of lawsuits, garnishments and property seizures. The peace of mind you experience in ridding yourself of the worry will allow you to focus on rebuilding your future.
• Protect retirement savings - you will preserve your 401(k) or other protected retirement account(s). You will not have to exhaust these savings trying to meet your debt obligations and ultimately, finding that you still have to file bankruptcy while no longer having these savings for your future.

Whatever your personal situation, it is our commitment at Level One Legal Services to provide you with the legal counsel and advice necessary to eliminate your debt in a Chapter 7 bankruptcy in Ann Arbor. We understand you are overwhelmed and looking for relief. The goal of our bankruptcy lawyers is to guide you through the process while helping you keep your home, your car, your personal belongings. . . but wipe out your debt so you can start over financially. Please click here for answers to consumer bankruptcy FAQs and for more resources.