Chapter 7 Bankruptcy Information for Those Buried in Debt
Chapter 7 Bankruptcy Information for Those Buried in Debt
Chapter 7 bankruptcy was designed to specifically help you to eliminate your unsecured debt. Chapter 7 bankruptcy covers debt in the form of credit cards, medical bills, payday and some personal loans, past due utility bills, and other such kinds of debt.
Chapter 7 bankruptcy is best suited for those who have large amounts of credit card debt and unpaid medical bills. It offers protection for your home, car, and your wages, and gives you a fresh start. Of course, Chapter 7 bankruptcy is not available to everyone, but only to those who pass the means test. Generally, this is based upon your income and whether you would be able to reasonably manage paying off your debts otherwise.
If you do qualify for Chapter 7 bankruptcy, you gain the protection of an automatic stay once you file, which means that any collection or court proceedings concerning debts you owe must immediately cease. Chapter 7 bankruptcy involves a liquidation of your assets, so any of the additional luxuries you have such as a second car, a vacation home, jewelry, and the like may be auctioned to repay your creditors.
The complete process from filing to discharge usually takes between four and six months, and while you can file your Chapter 7 bankruptcy on your own, it’s best to consult a legal professional if you have uncertainties. You must be careful to file all necessary forms, and do so correctly, in order to avoid a case dismissal.
