Boston Bankruptcy Lawyer
Filing for Chapter 7
In general, there are two different ways in which an individual can file for bankruptcy. These are Chapter 13 and Chapter 7. Whereas Chapter 13 bankruptcy involves paying off your debt after a consolidation, Chapter 7 bankruptcy is a complete liquidation of your debt.
Because Chapter 7 bankruptcy completely liquidates your debt, it cannot be filed by everyone. To keep this from occurring, there is a means test that determines whether or not an individual qualifies for bankruptcy under Chapter 7.
In order to completely liquidate your debt, most of your property will be sold and the proceeds will pay off your creditors. However there are some types of property that are exempt from having to be sold. Once this is taken care of, however, the individual can be debt free. There are some types of debt, however, that will survive Chapter 7 bankruptcy.
Some of the types of debt that will not be liquidated by Chapter 7 bankruptcy are:
- Property tax
- Income tax under 3 years old
- Fines for criminal acts that the debtor was convicted of
- Student loans
- Child Support
- Alimony
These debts cannot be liquidated, and will have to be paid by the debtor. However, other debts will be liquefied, and the process will leave you debt free unless you have one or more of the aforementioned debt types.
Speak with a Boston Bankruptcy Lawyer
Filing for bankruptcy can be a difficult process, and can be confusing at times. If you would like more information about Chapter 7 bankruptcy, or are considering filing for bankruptcy, contact the Boston bankruptcy lawyer of Joshua Spirn & Associate at 800-975-5346.
