A Bankruptcy Lawyer’s Blog

Bankruptcy Service What Is a Chapter 7 Bankruptcy?

A Chapter 7 is a very straight forward final process in which most your assets and debts are liquidated. There are some instances that you can keep and maintain some of your assets but for the most part most of your assets are sold. Some assets that are possibly exempt may include vehicles, household furnishings, and work items. Property is often sold by court appointed officials on behalf of the creditors. Your debts are discharged every 6 years, and it will stay on your credit for a minimum of 10 years. Bankruptcy is a permanent issue that must be disclosed when asked on loan applications and in certain lines of work. It must be disclosed to get a security clearance for example. If you lie on applications it can be considered a serious criminal offense.

Upon filing for bankruptcy, the creditors must stop attempting to contact or harass you. This is nice in that it gives immediate help and stress relief from the issue. As well, it will stop repossessions, pending foreclosures, removal from your residence. Creditors must refrain from all contact or threat of suing.

Chapter 7 generally will get of most of your unsecured debt, wage garnishments, debt collection and collection agencies, repossession, foreclosure and general harassment. As discussed, there are certain assets that you might be able to keep. Chapter 7 does not erase all debts. Those include but aren’t limited to:

1. Child Support

2. Student Loans

3. Taxes

4. Alimony

5. Fines

In most cases you will not be allowed to keep your home or other property if there are liens on them.

For a nice guide to filing bankruptcy or more info on if you might qualify for bankruptcy services be sure to visit BankruptcyServiceInfo.com today!