Bankruptcy

A fresh start with Chapter 7

While some debt such as past child support, most tax debt and student loans cannot be discharged in Chapter 7, those consumers who have credit card debt and medical debt could benefit from Chapter 7 bankruptcy filing. When you are facing foreclosure or eviction, this process could prevent you from being put out of your home. Chapter 7 allows you to wipe out unsecured debt and get a fresh financial start allowing you to regain your financial footing.

Chapter 7 discharge of debts

When you have successfully provided the courts with the required documents, your Chapter 7 will be discharged by the courts. Once this occurs, your unsecured debt including credit cards and medical debt will be eliminated. Anytime you see any of these debts reappear on your credit report, you should contact your bankruptcy attorney for assistance since they are no longer eligible to be collected upon.

Consumers are often not aware that most of their assets such as their home or automobile may be protected in Chapter 7 bankruptcy. There are exemptions that allow most debtors to maintain their assets provided they can maintain the payments on them. If you are uncertain about which assets may be exempt from being sold and used to pay down your debt, discuss them with your bankruptcy attorney. It is imperative you not transfer any assets to family members prior to filing for bankruptcy or your petition may be denied.