Eliminate Debts with Chapter 7 Bankruptcy in Rhode Island
Chapter 7 is the type of bankruptcy that is familiar to most people. It can be a good option for people with no steady income or those whose income falls below a certain threshold. Chapter 7 bankruptcy is not for everyone, and the advice of a lawyer can be extremely helpful in these situations. From our offices in Providence and Middletown, the attorneys at Karns & Kerrison offer clients more than 85 years of combined experience in Chapter 7 filings and other bankruptcy proceedings.
In Chapter 7, some of your assets are sold (liquidated) to pay off your creditors. In exchange, you will be allowed to discharge (eliminate) most of your unsecured debts, such as credit card and medical debt. Certain types of debt—such as child support, student loans, and most taxes—cannot be discharged in Chapter 7. Additionally, if you want to keep your home, you will be required to continue making mortgage payments.
The Truth about Chapter 7 Bankruptcy
Many people worry that they will lose everything they own when they file for Chapter 7 bankruptcy. Do not forget that the bankruptcy laws were not designed to protect your creditors; they were designed to protect you.
The truth is that you get to keep any belongings that are classified as "exempt" under applicable state or federal laws. Household furnishings, clothes, retirement accounts, some homes, and some cars qualify as exempt property. We will evaluate your case to determine if filing under the state or federal statutes would be more advantageous for your situation.
If you do not have any assets the trustee believes can be sold to repay your creditors, you may not lose any of your nonexempt assets. These are commonly referred to as "no-asset" cases. If you have a no-asset case, you would move directly to the discharge stage.
What Debts Are Eliminated in Chapter 7 Bankruptcies?
Chapter 7 is primarily used to eliminate unsecured debts that may include:
- Credit card debt
- Medical debt
- Some IRS tax debt
- Some second mortgages and home equity lines of credit
- Utility bills
- Finance company and payday loans
- Personal loans
The Chapter 7 bankruptcy process usually lasts four to six months; the exact timeframe will depend on your unique situation and the various circumstances involved.
Guiding You through the Bankruptcy Process
At Karns & Kerrison, our lawyers can give you the information you need to make an informed decision. We can walk you through every step of the bankruptcy process and provide objective advice about your specific situation. We can help you protect your property, get out of debt, and begin a new chapter in your life.
Contact Karns & Kerrison to schedule a free consultation with an experienced Providence Chapter 7 bankruptcy lawyer. We have represented clients throughout Rhode Island and Massachusetts since 1974. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.
You can reach us by calling 401-841-5300 or contact us via email to arrange an appointment.