P.O. Box 2536, Daphne, AL 36526

Terrie Seal Owens, LLC

Terrie S. Owens · Attorney at Law



Mobile & Eastern Shore

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, often referred to as a “straight bankruptcy” allows you to completely eliminate certain debts.

Bankruptcy Chapter 7


  • Allows you to liquidate your unsecured debt and receive a discharge within four to six months from the date you file your bankruptcy case.
  • All of your unsecured debts such as credit cards, medical bills, payday loans, signature loans and repossession deficiencies, are eliminated with no payment to unsecured creditors.
  • Generally, you may reaffirm debts with secured creditors on property that you wish to retain such as your home or automobile.
  • You can choose to surrender property you do not want to retain and discharge any possible deficiency balance. 
  • Debts such as child support, alimony, most student loans and certain taxes cannot be discharged. 
  • To determine Chapter 7 eligibility, you must pass the “means test” which compares your income and expenses to national IRS standards. 
  • Debtors are eligible to file Chapter 7 and receive a discharge of their debts eight years after the filing of a prior chapter 7.
  • A bankruptcy proceeding is reflected on your credit report for 10 years, but it is possible for your credit to be rebuilt following the filing of a Chapter 7 Bankruptcy.