Our bankruptcy attorneys can educate you on your options for debt relief, including Chapter 7 bankruptcy. If you feel like you’re sinking further behind financially, we can help you plan for a brighter future. Contact McCue Law Office in Bangor today to get started.

What Is Chapter 7 Bankruptcy?

When you file for Chapter 7 bankruptcy relief, a trustee collects and liquidates all of your property that is not exempt to cover your debts. Most Chapter 7 bankruptcy cases are no-asset cases, which means that all property owned by the debtor is exempt. However, it is best to talk with an experienced bankruptcy attorney to understand the specifics of your unique situation.

Exempt Assets 

Certain property is exempt under Maine law, which means that trustees cannot take it when you file for Chapter 7 bankruptcy. This can include equity in your home, life insurance, family support income, pensions, personal property (clothing, household goods, and furniture), public benefits, tools of your trade, and wages earned after you file bankruptcy. Contact our bankruptcy attorneys to learn more about the difference between exempt and non-exempt assets.

How Chapter 7 Bankruptcy Works

A Chapter 7 bankruptcy case begins with filing a petition with the bankruptcy course. In addition to the petition, you must also file several other pieces of paperwork, including:

  • Schedules of assets and liabilities
  • Schedule of current income and expenditures
  • Statement of financial affairs
  • Schedule of executory contracts and unexpired leases

Filing correctly is important for your case to move forward smoothly, and our Bangor bankruptcy attorneys can help make sure that everything is properly prepared and that nothing is missing. You will also need to file a certificate of credit counseling and any debt repayment plan you made through your credit counseling course.

Here at McCue Law Office in Bangor, we listen closely to your situation and work with you to help you understand your legal options. There are several different chapters of bankruptcy law, and Chapter 7 bankruptcy isn’t the best fit for everyone. However, if you have debts that total more than half of your annual income, if it would take five years or more to pay off your debt, or if your debt is creating overwhelming stress, you may want to schedule a free consultation with one of our bankruptcy attorneys. Contact us today to get started.