Eliminating Debt & Starting Over
Chapter 7 bankruptcy is often called a “fresh start” bankruptcy because it is designed to eliminate unsecured debts and provide relatively quick relief. For individuals who cannot realistically repay their debts, Chapter 7 may offer a path forward.
How Chapter 7 Works
When a Chapter 7 petition is filed, an automatic stay immediately stops most collection activity. A court-appointed trustee reviews your assets and debts. In many cases, individuals are able to keep all of their property through Washington’s exemption laws.
Most unsecured debts can be discharged, including:
- Credit card balances
- Medical bills
- Personal loans
- Utility arrears
The process typically takes several months from filing to discharge.
Do You Qualify?
Eligibility for Chapter 7 is determined in part by the “means test,” which compares your income to state median levels. We analyze your income, expenses, and financial history to determine whether you qualify.
Benefits of Chapter 7
- Fast resolution
- Elimination of most unsecured debt
- Immediate protection from creditors
- Opportunity to rebuild credit sooner
If you are drowning in unsecured debt in Aberdeen or surrounding communities, Chapter 7 may provide the clean slate you need.
