What is Chapter 7

Chapter 7 Bankruptcy: Giving You a Fresh Start

A Chapter 7 is a part of the Bankruptcy Code that provides relief to individuals from paying their debt. Chapter 7 Bankruptcy is referred to as a “straight bankruptcy” or “liquidation bankruptcy” because it entails a liquidation of all your assets in order to repay your financial obligations. As soon as your case is filed, you no longer owe any debt; and, creditors and collection agencies can no longer contact you trying to collect. The law allows you to “wipe out” your obligation to repay the money you borrowed from them. You walk away without being legally responsible to repay the debt. 

Some debts (alimony, child support, student loans or government debts) can’t be dismissed. For this reason, it’s important to seek guidance from a professional about what can or can’t be discharged. 

How Does Chapter 7 Work?

Remember when you initially signed up for a credit card? On the application, it stated that you will pay back what you borrow. You agreed to this in exchange for using the card. What you signed is a contract in which you agreed to be legally obligated to repay the money the credit card loaned you. 

When you file Chapter 7, and receive a discharge, you are no longer legally responsible to repay the credit card. Your legal obligation is erased. It’s as if the contract never happened. 

That’s powerful. And that’s why the credit card companies don’t want you to file Bankruptcy. 

Is Chapter 7 Right for Me?

To be able to file for Chapter 7, you need to meet certain criteria. As a bankruptcy attorney in Worcester, MA, I can help you determine if you qualify for Chapter 7 and if it is the right option for your situation.    

Chapter 7 Bankruptcy Attorney: John “Jack” P. Morrison, Bankruptcy Attorney in Worcester, MA
By contacting a Worcester bankruptcy lawyer today, you can be on your way to financial freedom. My name is Jack Morrison and I have been practicing bankruptcy law in Massachusetts for 17 years. I’ve helped hundreds of clients just like you. I offer a free consultation that will explain exactly what will happen during a Chapter 7 bankruptcy, from filling out a petition with the Massachusetts bankruptcy court to ensuring all of the assets you own are safe. 

To speak to a Worcester bankruptcy lawyer, call my office today for a free consultation at (508) 852-7800.