What is Chapter 7 Bankruptcy?
April 6th, 2009 | by admin |When you are thinking about filing bankruptcy it can be very confusing. You may not know where to begin, you have been stressed out about your bills for awhile now. You have been receiving threatening letters in the mail and getting harassing phone calls to your home or cell phone. You are probably already at your wits end and the last thing you want to do is think about your bills some more. However, you will have to do this in order to file bankruptcy in order to determine which way is the best way for you to go. If you are thinking about filing then you will want to learn about Chapter 7.
Chapter 7 will take care of a lot of your debts, but not all of them. It is the best option for you if you have more going out in credit card payments, medical bills, and judgments, then you have coming in and you are needing to keep some of your assets, such as your home. There are a lot of things that are dischargeable under a Chapter 7 bankruptcy which will help you to get rid of that debt and feel as if you have a new lease on life. You will be able to start rebuilding your credit and stop the harassment you have been enduring from bill collectors.
Some of the things that you will be able to discharge under a Chapter 7 bankruptcy are credit card debts, loans, judgments, medical bills, and old income taxes. This can be a huge help to some people and may be all that they need to wipe the entire slate clean. Even if you have some debts that can’t be discharged under Chapter 7, you will want to consider that if most of your debt does get discharged then it may be enough to help you be able to catch up on your other bills.
Some of the things that can’t be discharged under a Chapter 7 bankruptcy are child support, recent taxes, divorce debts, drunk driving debts, student loans, criminal fines, restitution, or fraud debts. These things will still remain on your credit report, although you can have a better chance of working out payments on these once you relieve yourself of your other debts. This will also help your credit rating by paying on these debts and getting them caught up and current on your credit report.
Tags: Bankruptcy, Chapter 7
