Wipe Out Debts through Chapter 7 Bankruptcy
What is a Chapter 7?
Chapter 7 bankruptcy, also called liquidation, is the most common type of bankruptcy and completely eliminates your dischargeable debt forever. Individuals or businesses who are granted Chapter 7 bankruptcy discharge have proven to the Bankruptcy Court that they have no realistic way to repay their debt over the course of the next three to five years.
When Chapter 7 bankruptcy relief is awarded, the debtor is legally excused from having to repay any unsecured debts, and most debtors are able to keep all properties. Typically it takes about four months after the case is filed in the Bankruptcy Court, for a Chapter 7 bankruptcy case to be discharged.
Certain types of debts cannot be eliminated through Chapter 7 bankruptcy including student loans, child support, alimony, and most taxes.
You Previously Received a Bankruptcy Discharge
You cannot file for Chapter 7 bankruptcy if you obtained a discharge of your debts in a Chapter 7 bankruptcy case within the last eight years, or a Chapter 13 case within the last six years.
Benefits of Chapter 7
The Automatic Stay: A bankruptcy petition, once it is filed, immediately operates as an automatic stay, holding in abeyance various forms of creditor action against the debtor. Automatic stay provisions work to protect the debtor against certain actions from the creditor, including: (1) beginning or continuing judicial proceedings against the debtor, (2) actions to obtain debtor’s property, and (3) actions to create, perfect or enforce a lien against a debtor’s property,
The Fresh Start: With debts being discharged, not only are you financially free but you are emotionally free from the stress and anguish over how you will make ends meet. This relief is something that can change your life from worry and anxiety to a new beginning of hope. Within a matter of months, you will be eligible for new loans. While it will cost you a large amount of money to use these loans, there is the possibility of making it happen at any rate. That means that you have a chance at rebuilding your credit so that you can move on to better things later on in life. You will end the calls from creditors and you will be able to stop most of the garnishments that you are facing. When you do this, you’ll find yourself facing peace in your home again. You can work on building a savings account, an education fund and even a retirement account when you don’t use credit, but work off a cash only system.
