Overview of Chapter 7 Bankruptcy

Right now you probably feel overwhelmed, stressed, worried and anxious. We know the emotional toll money problems can have on people, especially when debt seems insurmountable. Deciding to file bankruptcy is not an easy decision and is even more difficult when you begin to learn about the different types of bankruptcy and the advantages/disadvantages of each type. We've helped people find a fresh start and put this burden down. We offer a FREE Consultation with a bankruptcy lawyer, so you get the answers specific to your situation.

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is sometimes called the "fresh start" or "liquidation" bankruptcy. It is called this because most unsecured debt is completely eliminated in a Chapter 7 Bankruptcy. This means the debt eliminate is no longer your financial responsibility and you are not require to repay any of it. Chapter 7 Bankruptcy usually only takes a few months to complete, but can vary by the complexity of your situations. While filing Chapter 7 Bankruptcy may be appealing, it may not be right for you. There are specific qualifications for a Chapter 7 Bankruptcy that must be met. Additionally, while you may qualify for Chapter 7 Bankruptcy, it may not be the best choice for your situation.

Eliminating Debt in Chapter 7 Bankruptcy

While most unsecured debt can be eliminated in a Chapter 7 Bankruptcy, it is important to understand that not ALL unsecured debt is eliminated.

Examples of Unsecured Debt Eliminated in Chapter 7 Bankruptcy:

• Medical bills
• Credit card debt
• Utility bills
• Personal loans (also known as signature loans)

Examples of Unsecured Debt Not Eliminated in Chapter 7 Bankruptcy:

• Spousal support (alimony) and child support
• Student loans
• Credit card debt in the 90 days prior to filing bankruptcy
• Taxes