What is Chapter 7 Bankruptcy?
When it comes to filing for bankruptcy, the most popular and most used form of bankruptcy is Chapter 7. A Chapter 7 bankruptcy is also known as a fresh start bankruptcy or liquidation bankruptcy. The reason Chapter 7 is so popular is because it does not involve any kind of repayment plan like in a Chapter 13 bankruptcy. After filing for bankruptcy under Chapter 7 the automatic stay is put into place and creditors will no longer be able to contact the debtor. This bankruptcy court injunction stops all collection attempts, repossessions and foreclosure and even all creditor harassment. Filing Chapter 7 bankruptcy allows the debtor to discharge or wipe out all of your unsecured debts, and in many cases, keep most, if not all of your possessions including your car and your home. Unsecured debts are like, credit cards, store charge cards, gas credit cards, payday loans, personal loans, judgments and deficiencies from repossessed property, utility bills, cell phone bills, and medical bills. Depending on your personal situation, you might even be able to get rid of old income tax debts and property tax debts. Ordinarily, most if not all debts will be discharged within a few months of filing for bankruptcy. You do have to qualify to file Chapter 7 bankruptcy. If you qualify, and most people who need to file Chapter 7 do, it is the fastest, most affordable way to get you and your family out of debt quickly and give yourself a fresh start. From beginning to end, the entire chapter 7 bankruptcy process takes about 3 to 6 months.
When filing bankruptcy, the laws do not allow the bankruptcy trustee to seize all the assets and sell them to cover the debts. They trustee only has access to non-exempt assets. When making the decision to file for bankruptcy it’s important to look at the complete picture. Knowing the ultimate goal of becoming debt-free is crucial to focus on to determine what your priorities are. If there are any doubts in achieving your goals you should speak with a bankruptcy attorney as soon as possible.
The bankruptcy laws have made it more difficult for Americans to file Chapter 7. The complexity of the new bankruptcy laws makes it necessary for the average person to consult with a bankruptcy attorney who is familiar with bankruptcy law and who knows the ins and outs of the court system. Chapter 7 bankruptcy was intended to help good people who have experienced financial setbacks due to unforeseen circumstances.
If you find yourself in a tight financial situation with mountains of debt that is causing you severe stress, then you should look for help for your financial problems. The more you do to understand how the bankruptcy law can protect you the faster you can get back on your feet. In order to stop the nightmares and the pounding headaches you need to take a moment and fill out the form for a FREE NO OBLIGATION CONSULTATION from a local bankruptcy attorney and find out what chapter 7 can do for you.