Chapter 7 is the most widely available form of bankruptcy, offering those who face debt they cannot get under control the opportunity to unload some of it in return for surrendering some types of property and submitting to a few restrictions on borrowing for several years. While this form of bankruptcy is often the most difficult to undergo because of property forfeiture, it is also available with fewer requirements than other bankruptcy options.
A Chapter 7 bankruptcy may successfully discharge a number of different kinds of debt, including
- Unsecured debts, like credit cards
- Utility bills in collection
- Medical debt
- Payday lender debt
- Car title loans
- Some types of court judgments
Many consumer debtors who might greatly benefit from Chapter 7 worry that they will come out the other side penniless, homeless and without any possessions. However, the reality of the process is that the law offers many exemptions for certain kinds of property, allowing debtors to keep some of their most cherished belongings or those they need to work and live.
If you suspect that a Chapter 7 procedure could offer you relief that you need, don’t keep putting it off. the sooner that you understand the details of the process and file, the sooner you can get you finances back on track and put a stop to frustrating collections tactics.
An experienced bankruptcy attorney can help guide you through this process and ensure that you understand your rights and how to protect them.
Bankruptcy is never an easy choice, but it should not be a shameful one. If you are struggling to pay your debts and do not see any other feasible way out, don’t hesitate to seek the financial relief you deserve.
Source: The Credit Solution Program, “Can Bankruptcy Save Me From My Debt Nightmare?,” Rebecca Lake, accessed Feb. 09, 201