Chapter 7 Bankruptcy
At McBride & Collier, our bankruptcy lawyers advise Chapter 7 Bankruptcy when a clients’ debts are large in relation to income and living expenses, making it difficult to make full or partial payments under Chapter 13. Chapter 7 of the United States Bankruptcy Code (also known as straight bankruptcy) will allow you to discharge most of your debt and, generally, keep paying your creditors for property you want to keep. Chapter 7 bankruptcy proceedings are handled through the United States Bankruptcy Court.
How Chapter 7 Works
The Chapter 7 bankruptcy proceeding begins with a free initial consultation with one of our attorneys at any of McBride & Collier’s three locations in Alexandria, Shreveport, or Monroe. Once we have filed your bankruptcy paperwork, the court will appoint a Trustee for your case. The Trustee's job is to review the paperwork that our attorneys file with the court and to determine whether or not there is anything that you own that he can liquidate to generate funds to pay a dividend to your creditors.
There will be a meeting with your Trustee within 20 to 40 days after your case is filed. You must attend this meeting, accompanied by one of our attorneys, in order to receive a discharge from your debts. The technical term for this meeting is "Section 341(a)" or "Meeting of Creditors." Your creditors are allowed the opportunity to come to the meeting and ask you simple questions about your debts; however, typically they do not attend.
Chapter 7 discharges unsecured debt, such as credit cards, medical bills, and some income tax payments (if filed in a timely manner). Tax debt that is less than three years old and government backed student loans cannot be discharged under any circumstances. You may have some debts that you want to keep paying after you file your Chapter 7, such as your car loan or your home loan. Typically in this case, the creditors will send us what is called a "Reaffirmation Agreement" which will be mailed to you for your signature. Reaffirmation Agreements are binding, meaning that once you sign them, you are legally responsible for any reaffirmed debt regardless of the fact that you have filed bankruptcy.
McBride & Collier represents clients in Alexandria, Shreveport, Monroe, Bossier City, Pineville, Mansfield, Ruston, and Natchitoches, and throughout the state of Louisiana in Chapter 7 bankruptcy proceedings. For more information about bankruptcy law, visit our Bankruptcy Information Center, or contact our lawyers today to schedule a free initial consultation.
