George E. Marzloff, Attorney

Chapter 7 is the traditional “straight” bankruptcy. After meeting certain income limitations the debtor submits a list of assets and liabilities to the Court. He and his attorney attend a meeting with a Trustee who reviews his case. A few months later a discharge is granted which effectively prevents creditors from personally suing the debtor. The law allows a debtor to exempt, or save certain types of property. Thus, a debtor is entitled to keep up to $2,000 in equity (car value less loan amount) in a motor vehicle; his clothing, pets, furniture, kitchen appliances, and tools of his trade. He is also entitled to an exemption of $5,000 plus an additional $500 for each dependent. If a debtor’s spouse joins in the bankruptcy there is an additional $5,000 exemption.  Elderly debtors receive an even larger exemption amount.  If you are behind in payments on a car or home, you may wish to consider Chapter 13, which will allow you to keep your assets while you catch up on your delinquencies over a period of up to five years.  Contact us for a review of your specific situation.

Call for FREE Initial Consultation  540-659-3131

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