Chapter 7

If you or someone you know has fallen on hard times and is unable to pay their debts, one option is to file for Chapter 7 bankruptcy. Also known as liquidation bankruptcy, this financial option is available to individuals and businesses who are unable to make regular monthly payments on their existing debts. Chapter 7 bankruptcy allows a person to get a fresh start by discharging their debts and providing the opportunity to start anew. At Cornwell Law Firm in Duluth, our knowledgeable bankruptcy lawyers have helped many people file for Chapter 7 bankruptcy and are prepared to assist you with [...]

In June 2019, consumer debt in the United States grew by 4.3 percent to $4.1 trillion, breaking the previous month's record of $4.09 trillion. The majority of non-revolving American debt is linked to education and auto loans. During the same time period, credit card debt totaled $1.072 trillion and accounted for approximately 26 percent of all debt. What happens when a family who lives paycheck to paycheck experiences a job loss, a medical emergency, or the need or urgent vehicle repairs? If you are someone who could be sent into a downward financial spiral by just one of these situations, you [...]

Chapter 7 bankruptcy is the most common type of bankruptcy filed in the United States. However, many people who file bankruptcy petitions under Chapter 7 are not familiar with the legal process and have little to no idea what to expect. It is important to understand the Chapter 7 process - the good and the potentially bad - so there are no unexpected delays or complications in your case. Before you file, you should always learn about the process from an Atlanta bankruptcy lawyer at Cornwall Law Firm. The Automatic Stay After you file your petition, you will experience an immediate [...]

The Benefits of Filing Chapter 7 Bankruptcy You have probably heard plenty of negative things about bankruptcy. Depending on where you have gotten your information, you may have heard that it will ruin your credit forever, that you may not be able to find a good job afterward, or even that your bankruptcy will show up on a background check. While some of these claims are loosely based on facts, the truth is that when it comes to bankruptcy, people tend to overemphasize the negative. In reality, the process of bankruptcy has some truly positive aspects. Below we will discuss some [...]

Short Answer to the Question "Can I Keep My Home in a Chapter 7 Bankruptcy?" One of the first questions that everyone has when considering bankruptcy is "Can I Keep My Home in a Chapter 7 Bankruptcy?" When you file for Chapter 7 bankruptcy, it just depends on how much equity is available in your home, how much of a homestead exemption is available in your situation, and whether or not you are current on the mortgage payments. Another thing to keep in mind is even if you are able to keep your home when you file bankruptcy, do you want [...]

When you file for bankruptcy, you will be required to take a means test. This is a test that will determine if your income is low enough to qualify you for a Chapter 7 bankruptcy. This test is formulated to prevent high-income people from filing for this type of bankruptcy. If you fail the Chapter 7 means test, you can then file for a Chapter 13 bankruptcy instead. A Chapter 7 means test does not require you to be penniless to pass. You can still earn a significant income and qualify for a Chapter 7 bankruptcy if you have numerous expenses, such as [...]

Why You Should Consider Chapter 7 Bankruptcy  Chapter 7 bankruptcy is much different from Chapter 13 bankruptcy in that it does not involve filing a repayment plan. Instead, the trustee for the bankruptcy will gather and sell the debtor’s assets that are not exempt and use the proceeds of the sales to pay any creditors according to the Bankruptcy Code provisions. Some of the property could be subject to mortgages and liens that pledge certain property to creditors. The Bankruptcy Code allows the debtor to keep some exempt property, but the remaining assets will be liquidated by the trustee. You need [...]