Dane Schofield Introduction

My name is Dane Schofield and I have been an attorney practicing bankruptcy law for over 40 years.  I have created this firm to focus exclusively on Chapter 7 bankruptcy.

What exactly is a Chapter 7 bankruptcy? 

There are several types or chapters of bankruptcy available, and this can sometimes cause confusion.  People will often hear about Chapter 11 or Chapter 13 bankruptcy. These are reorganization bankruptcies. Chapter 11 bankruptcy is a business reorganization plan, often used by large businesses to help them stay active while repaying creditors.  Chapter 13 bankruptcy eliminates qualified debt through a repayment plan over a three- or five-year period.

Chapter 7 bankruptcy is the simplest and most common form of bankruptcy. About 95% of all bankruptcies are Chapter 7, which is a discharge bankruptcy. This is for consumers who have debt that is overwhelming them.  With Chapter 7 bankruptcy, the debt is discharged or in other words, forgiven.

A chapter 7 bankruptcy usually takes about 6 months from start to finish to complete. It does impact your credit and will be on your credit history for up to 10 years.  Does that mean you can’t get restarted for 10 years after filing a Chapter 7 bankruptcy? No, not at all. Once your debt is discharged, you can immediately start to rebuild your credit and will undoubtedly get offers from credit card companies to get a low limit credit card.

How is that possible if I just filed Chapter 7 bankruptcy? Since you no longer have massive debt and you are no lingered allowed to file bankruptcy for another 8 years, you are actually a low credit risk. In fact, it’s actually a good idea to get a new credit card to rebuild your credit.

What type of debt is dischargeable in chapter 7?

Mostly consumer debt, such as credit cards, medical bills, judgments back rent, etc.

Deciding to file for Chapter 7 bankruptcy can be a difficult decision and it’s important you understand all your options.  Contact me today and we can help you determine if Chapter 7 bankruptcy is right for you.