Chapter 7 Bankruptcy

Eliminating Unsecured Debts Through Bankruptcy

At Sigmon & Henderson, PLLC, we will thoroughly evaluate your income, expenses and other financial obligations to help determine if you qualify for Chapter 7 bankruptcy protection. Strict requirements under the Chapter 7 means test disqualify some individuals and households, but in-depth analysis by one of our knowledgeable bankruptcy attorneys often reveals technicalities that others may miss, allowing more of our clients to qualify for Chapter 7.

Chapter 7 bankruptcy is "liquidation bankruptcy." Any assets you own that are not exempt under applicable state or federal law could be sold to pay your debts. Our attorneys will help you determine whether your assets are exempt from liquidation. The goal of Chapter 7 bankruptcy is to obtain a discharge. Creditors can never again attempt to hold you liable and collect on debts subject to the discharge, and they can no longer report such debts as due or in default on your credit report.

As soon as you file, an automatic stay temporarily stops all attempts to collect against you, including foreclosure, repossessions, civil lawsuits, civil judgments, wage garnishments, attachments and account levies while you are in bankruptcy.

Completing your case and obtaining a Chapter 7 discharge will permanently stop collection or enforcement of discharged debts, but a Chapter 13 bankruptcy may be necessary if you need to cure defaults on debts secured by items you want to keep such as your home mortgage or car loan. In Chapter 7, you can reaffirm debts secured by items you want to keep such as your home or car if you are current on them, which means you get to keep the item as long as you agree in writing to keep paying according to the terms of your contract.

Contact Sigmon & Henderson, PLLC, to schedule a free initial consultation with an attorney. Call us in Gastonia at 704-269-6374 today.

Pursuing The Debt Relief You Deserve

Our financial counsel, document preparation and representation are customized to your specific needs and objectives when we assist you with your bankruptcy filing. We want to help you eliminate debt, protect your property and get a fresh financial start in the most efficient way possible.

During your case, you can notify your creditors to stop contacting you about collection and refer them to us as your bankruptcy counsel. We will also send them notification of your case and our representation. After your case is completed with a discharge, your liability for most unsecured debts will be eliminated, including:

  • Credit card debt
  • Medical bills
  • Income tax debt due more than three years prior if returns were filed on time
  • Personal loan debt
  • Payday loan debt
  • Gambling debt
  • Deficiency claims for surrendered collateral for loans

Your personal liability on secured debts is also subject to the discharge, but the secured creditor can still enforce its lien against the property to foreclose or repossess unless you are current and, if applicable, enter a reaffirmation agreement promising to remain liable and keep paying according to the contract. If you do not want to keep the item securing the loan, you can elect to surrender it back to the creditor and enjoy no longer being liable for the debt.

You can begin improving your credit as soon as your bankruptcy is complete, and your prebankruptcy creditors should cease all attempts to collect against you. Such an attempt would be a violation of bankruptcy law and the court's discharge order in your case.

Take The First Step To A Fresh Start Today

Call us at 704-269-6374 or email us to schedule a free initial consultation with an experienced Chapter 7 bankruptcy lawyer.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.