Gold, Lange & Majoros, P.C.
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Gold, Lange & Majoros, P.C.
24901 Northwestern Highway, Suite 444
Southfield, Michigan 48075
Telephone: 248-350-8220
Fax: 248-350-0519
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Chapter 7
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Chapter 7
Chapter 7 is the most common type of bankruptcy. It is sometimes referred to as "liquidation bankruptcy" or "straight bankruptcy". The basic purpose of Chapter 7 is to provide you with a fresh start by wiping out all qualifying debts including credit cards, medical bills, repossession deficiencies, lawsuits, as well as a variety of other debts. In Chapter 7, there is no repayment required for most unsecured debts and the eligible debts are wiped out completely and permanently. The entire process usually takes less than 4 months to complete. After the bankruptcy is over, the consumer may choose to selectively pay back debts, however repayment is not legally required.

In a typical Chapter 7 case, the consumer only has one meeting with the bankruptcy trustee. The purpose of that meeting is to give creditors a change to ask questions, though it is rare that a creditor shows up; it is mostly handled by attorneys. The trustee may also ask you questions about particular items related to your financial affairs. Most meetings only take a few minutes. Some consumers feel some level of anxiety or fear leading up to the meeting with the trustee, but there is no reason to fear the trustee. The trustee is looking for people who are hiding assets or trying to defraud the system; they don't want to harass or scare the common consumer. The meeting will take place in an ordinary conference room. The trustee is not a judge and the setting is informal. Once the meeting with the trustee is done, most consumers only have to make sure they keep their address current with the court and wait to receive their discharge.