Eliminate Debts With Chapter 7

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 Law Group offer clients more than 40 years of 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.

Start Over With A Clean Slate

The Chapter 7 bankruptcy process usually lasts four to six months. 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

We Will Guide You Through The Bankruptcy Process

At Karns Law Group, our Rhode Island lawyers will give you the information you need to make an informed decision. We will 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 Our Chapter 7 Bankruptcy Lawyers Serving Rhode Island

Contact Karns Law Group to schedule a free consultation with an experienced Rhode Island Chapter 7 bankruptcy lawyer. We have represented clients throughout Rhode Island and Massachusetts since 1974. You can reach us locally by calling 401-239-1085, toll free at 888-KARNS-LAW or contact us via email to arrange an appointment.

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