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What is Chapter 7 Bankruptcy

Hello my name is Jeff Kelly I'm a bankruptcy attorney in the Northern District of Georgia and today I want to talk about chapter 7 what is it what can we wipe out what can we not wipe out many people I'd refer to chapter 7 is the Fresh Start provision of the Bankruptcy Code basically it allows you to wipe out your debt move on and get a new start with life let's say you have a house and let's say you're under water the house is worth way less than what you owe and let's say you have a first mortgage in a second mortgage and you're worried about this stuff hanging over you well chapter 7 allows you to surrender the house we can wipe out both those mortgages let's say you have a huge pile of medical bills oftentimes we'll have clients come in and through no fault of their own they've been through a medical tragedy and they're just left with this enormous amount of medical debt that they cannot handle chapter 7 allows you to wipe that debt out same thing with credit cards now there's some types of debt that we can't wipe out as a general rule you cannot wipe out student loans however there is an exception of the bank tree code in hardship situations some people can but those situations are extremely rare in most cases you know if you're working you've got a job you're earning income more likely you're going to get stuck having to repay those student loans hopefully Congress will change that in the near future taxes are type of debt some types of taxes we cannot eliminate let me give you an example of what you can what you can let's say you have filed your tax return more than three years ago let's say there's no tax lien filed against you we'll be able to wipe that tax debt out because it's more than three years old I'm assuming it's income taxes now let's change it around a little bit let's say it's a different type of tax let's say it's Georgia sales tax well that's the type of debt you're not going to be able to wipe out because technically if you are an owner of a business and you are collecting sales tax technically Georgia considers that to be their money and you're just holding it in trust for them so sales tax as a general rule we're not gonna be able to get out of that one some tax maybe now if the tax set is less than three years old you're going to be stuck having to pay that back so how do you determine how all the taxes depends on when you have filed your tax return and unfortunately a lot of people that come in to meet with me that have tax issues they have not filed their tax return in years so let's say you owe taxes from the Year 2005 and you just filed the return yesterday well that debt is considered one-day-old because you just filed the return so tax issues are very complicated you know it depends on the situation I'd be happy to sit down with you and take a look other types of debt that you cannot wipe out in a chapter 7 let's say you've got somebody and they know they're in economic trouble and they go out and they just run the credit cards through the roof and now they're gonna breeze them in file chapter 7 that's not going to happen you can't do that debts that have been incurred very close to your filing date the creditors gonna fight you you can't do that chapter 7 is for people who have gotten into some trouble through no fault of their own they've had some job loss sometimes people go through divorce things like that things that are beyond your control but if somebody is intentionally trying to take advantage of the system there they're going to get in trouble but if you have any questions at all please don't hesitate to give me a call at one eight eight eight eight three two eight two four nine you can also call us on our main number at seven oh six two nine five zero zero three zero and I hope you'll check out my website <a href="www.marykay.co.uk/awilliam" target"_blank:>www.marykay.co.uk/awilliam</a> visit

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"Jeff and his team do great work. They are fast and easy to work with. I would suggest working with them if you need to file for bankruptcy. Thanks Kelly Law Group!

Tom L.

"The staff was great helpful always there to answer our questions courteous would highly recommend Mr Kelley and his office staff Great Job. Thanks. Mary and Philip Abrams."

Mary A.

"They really helped me to feel comfortable and explained everything in detail and made sure I understood the process from start to finish. I recommend them highly. Thank you guys."

Mickey J.

"Mr Kelly was very professional and charming. He explained everything, took time for me to decide the right course to take in my situation. He is also funny I would recommend him to anyone looking for an honest attorney who has a heart."

Dyann R.

"Extremely professional. Helpful and knowledgeable every step of the way. Make you comfortable from the get go and never make you feel like they are judging you. Each and every person I talked to was so nice."

Lynn S.

"I would love to just tell you THANK YOU!! Without your help my family would have been destitute. Now that my case has been completed successfully, it is the biggest RELIEF to not have to wonder how to make ends meet."

Angela W.