Defeat Bankruptcy

What Happens After Filing Chapter 7 Bankruptcy?

After filing Chapter 7 bankruptcy, you can expect to have some relief from the hassle of creditors constantly calling you demanding money. Chapter 7 bankruptcy is intended to eliminate most, if not all, of your unsecured debts, but it can be a lengthy process. Once you file all the necessary paper work, you will have to wait for the judge to approve your petition.

When you first file your Chapter 7 bankruptcy, an automatic stay is enacted so your creditors cannot take any further action to collect on your debts. Within a couple of months, the court will hold a hearing that involves you and your creditors, and at this time, it will be decided if you will have to pay back any of the debts you owe, and which of your assets you will be allowed to keep in light of the bankruptcy. If you have multiple homes or vehicles, or just lots of luxury items, the judge may order that they be liquidated to pay off your creditors.

Of course, you credit will be somewhat damaged after filing Chapter 7 bankruptcy, but you can start rebuilding once your case has been discharged. It takes about four to six months for the judge to decide on the final disposition of your bankruptcy case, but it’s well worth the wait. If you filed all forms properly and followed all the guidelines given to you, then your case should be discharged and your debt completely wiped out!