Chapter 7 Bankruptcy is the most basic type of bankruptcy that I deal with as a New Jersey bankruptcy lawyer. Approximately 3-4 months after filing, you will receive a discharge of all unsecured debts including credit cards, medical bills, utility bills, personal and/or business loans, lines of credit and the like. The discharge works as a permanent defense or injunction against creditors. You are no longer legally responsible to pay the unsecured debts listed in your petition, with few exceptions such as student loans and domestic support obligations including alimony and child support.
After our initial consultation, Andrea Silverman, PC will gather the necessary information to prepare the Chapter 7 bankruptcy petition on your behalf. The Bankruptcy Court requires your filing to contain a complete listing of all of your assets, debts, income and expenses. There are allowable exemptions to protect all types of real and personal property. We will review them together during our meeting. You are also required now by the Bankruptcy Reform Act of 2005 to get a credit counseling screening from an agency that has been approved by the Office of the United States Trustee and a debtor education course prior to being granted a discharge.
Immediately upon filing your case, you will be given the protection of the automatic stay which forbids all creditors from continuing any collection efforts without permission from the Bankruptcy Court.
A chapter 7 bankruptcy trustee will be assigned to your case, and approximately 60 days after the hearing, you will be granted a discharge.