Advantages and Disadvantages of Chapter 7

milwaukee bankruptcy lawyerChapter 7 Bankruptcy Attorney Milwaukee

Advantages of Chapter 7 Bankruptcy

  • Lombardo Law Office has Chapter 7 Bankruptcy Attorneys that will tell you with a few notable exceptions, bankruptcy stops all ongoing legal actions against the debtor, prevents a creditor from beginning new legal actions against the debtor, and prohibits creditors with notice of the bankruptcy case from contacting the debtor, or anyone else besides the debtor’s attorney, to discuss or seek collection of a debt.
  • Most liabilities relating to credit card debts, civil judgments, past-due accounts, and judgments due to repossessions and foreclosures may be discharged.
  • A debtor may be able to keep all or most of his or her property through federal and/or state exemptions.
  • Certain liens and certain involuntary transfers (such as garnishments), may be avoided if timely action is taken.

Disadvantages of Chapter 7 Bankruptcy

  • Debts relating to certain taxes, governmental fines, forfeitures and restitution, criminal or fraudulent conduct, child and spousal support, drunk driving, most student loans, and willful and malicious injuries, may not be dischargeable.
  • In most cases, a debtor may receive a discharge only once in eight years. Debtors contemplating bankruptcy must consider their financial stability and ability to avoid the problems resulting in the bankruptcy during that period.
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