When debt becomes too much to handle, Chapter 7 bankruptcy may help clear many common debts and give you a way to move forward.
We will review whether Chapter 7 may fit your situation, what property may be protected, and what steps may come next.
Chapter 7 bankruptcy is a legal process that may erase many unsecured debts. These can include credit cards, medical bills, personal loans, payday loans, and some collection accounts.
Chapter 7 is often used by people who do not have enough income to keep up with their bills.
Once your case is filed:
Many simple Chapter 7 cases are finished within a few months.
Kostopoulos Bankruptcy Law helps people with bankruptcy, foreclosure, and serious debt problems. Our team understands how stressful debt can feel when your paycheck, home, car, or peace of mind may be at risk.
We explain your options in plain language. We help you understand what Chapter 7 may do, what it may not do, and what choice may make sense for your life.
What sets our firm apart:
Focused help with bankruptcy and foreclosure-related debt problems
Clear answers from a bankruptcy lawyer
Experience helping people protect homes, vehicles, income, and important property
Flexible payment options
Support in English, Spanish, Greek, and Arabic
You will get honest guidance, clear next steps, and a plan based on your financial situation.
Debt problems often get worse when they are ignored. If you are dealing with collection calls, wage garnishment, lawsuits, medical bills, credit card debt, or money stress, it may be time to talk to a lawyer.
Call now to speak with a bankruptcy lawyer about your options.
Not ready to call yet? Visit our Learning Center to understand your options before taking the next step.
Chapter 7 may help erase many common debts, including:
Credit cards
Medical bills
Personal loans
Payday loans
Utility bills
Collection accounts
Some older tax debts, depending on the situation
Some debts are usually not erased in Chapter 7. These may include child support, most student loans, and many recent taxes.
Even if every debt cannot be erased, Chapter 7 may still help by stopping many collection actions and clearing other debts that are weighing you down.
Many people worry they will lose their home, car, or personal belongings if they file Chapter 7. In reality, bankruptcy exemptions may protect much of what they own.
Depending on your situation, exemptions may help protect:
Many Chapter 7 clients are able to keep their home, car, personal belongings, and retirement savings. This depends on what you own, what it is worth, and which Michigan or California exemptions apply.
Before anything is filed, we review your property with you so you understand what may be protected.
We review your income, expenses, debts, property, and goals. This helps us see whether Chapter 7 may fit your situation.
We look at whether you may qualify for Chapter 7. We also review what property may be protected under Michigan or California exemption laws.
Once your case is filed, the automatic stay usually begins. This can stop many collection calls, letters, lawsuits, and wage garnishments while your case moves forward.
You attend a short required meeting to confirm your information. We help you prepare and attend with you.
The trustee reviews your paperwork and checks whether there are any assets that are not protected by exemptions.
If your case moves forward without problems, eligible debts may be discharged. This often happens within a few months of filing.
Debt problems usually get worse when they are ignored. Call now to speak with a bankruptcy lawyer about your options.
Not ready to decide? Learn more about your options in our Learning Center.
Many people feel nervous, embarrassed, or unsure before calling a bankruptcy lawyer. These questions are common, and you are not alone.
It’s completely normal for debt to feel tangled or hard to explain, especially when accounts have been sold, collectors change names, or you have been avoiding statements because the stress feels too heavy.
You do not need to have everything perfectly organized before reaching out.
Once you hire Kostopoulos Bankruptcy Law, our team can pull your credit report and walk through what you owe with you. We help identify creditors, review balances, and fill in the gaps so you are not trying to sort it all out alone.
You are not expected to show up with a perfect spreadsheet. You just need to start the conversation.
Yes. Avoidance is a very common response to financial stress.
You’re not alone, and you haven’t ruined your chances by stepping back for your own mental health.
We don’t judge you for unread emails, unopened envelopes, or ignored phone calls. We simply help you:
Avoiding the bills did not break anything. Getting the right information can change everything.
A negative balance or frozen bank account does not stop you from filing Chapter 7. In fact, bank problems are one reason many people reach out for bankruptcy help.
An account may be frozen because of a judgment, garnishment, or other creditor action. Filing Chapter 7 can often stop most collection activity, including many efforts to take money from your account.
It is also important to tell your lawyer where you bank before filing. Some banks or credit unions may place a temporary hold on an account after a bankruptcy case is filed, even when the money may ultimately be protected. Knowing this ahead of time helps your attorney look at the full picture and help you plan before filing.
We’ll look at:
This is a problem we can help you sort through — even if it feels overwhelming right now.
Not necessarily. Many people rely on family or friends when money is tight. Borrowing from loved ones does not stop you from filing bankruptcy.
But if you are thinking about filing, do not pay anyone back — including family or friends — until you speak with a bankruptcy lawyer.
The court may review payments made before a bankruptcy filing. If you recently repaid family or friends while other creditors went unpaid, the trustee may consider that a preference payment. In some situations, those payments can create problems for the person you paid. Under federal bankruptcy law, payments to insiders such as relatives may be reviewed if made within one year before filing.
We explain this before you file so you know what to do and what to avoid.
Borrowing from loved ones does not make your situation “bad.” It means you have been trying to get through a hard time. The important thing is to get legal advice before paying anyone back.
Absolutely.
Credit scores don’t always reflect reality.
You can have:
A credit score in the 600s or 700s
Perfect payment history
And still be one paycheck away from falling behind
The court doesn’t base eligibility on your score.
The real question is, is your debt manageable based on your income and expenses?
If you’re using credit to pay for groceries, gas, or basic bills—even with a decent score—bankruptcy may still be the right tool.
This happens far more often than people admit.
Debt can be embarrassing, and many people hide the struggle until it becomes too heavy to carry alone.
You are allowed to file individually — your spouse is not automatically pulled into the case.
We help you:
Understand how your filing affects joint accounts
Decide when and how to share the information (if you choose to)
Protect your household in a way that feels safe and respectful
This is a judgment-free space. You’re not the first person to have complicated emotions around debt and marriage — and you won’t be the last.
Yes—it’s important to stop using them as soon as you’re seriously considering bankruptcy.
Why? Because large purchases or cash advances right before filing may be reviewed by the trustee.
Normal, everyday charges for food or gas are typically fine, but once you’re evaluating bankruptcy, the safest path is to stop new charges and let us help you plan your next steps.
This doesn’t mean you’ve done anything wrong—it just ensures your case goes as smoothly as possible.
Filing bankruptcy is a big decision, but you do not have to make it alone.
We can help you:
Review whether you may qualify for Chapter 7
Explain which debts may be erased
Review what property may be protected
Compare Chapter 7, Chapter 13, and other debt relief programs
Call Kostopoulos Bankruptcy Law at (877) 969-7482 or reach out online to schedule your free, confidential case evaluation.
Debt Released
Solving Debt Problems
Cases Filed
Homes Saved
Our priority is helping you regain control—not just reshuffling balances.
If debt is weighing on you, you do not have to face it alone.
A Chapter 7 consultation can help you understand whether bankruptcy may fit your situation, what property may be protected, and what steps may come next.
Private. No pressure. Clear answers about your options.
Clear answers before you make financial decisions
Free Consultation
You do not have to figure this out alone. Kostopoulos Bankruptcy Law helps people in Michigan and California understand bankruptcy, debt relief, foreclosure, wage garnishment, and other debt problems in plain language.
Private. No pressure. Clear answers about your options.
