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Are you Eligible for Chapter 7 Bankruptcy and how does Chapter 7 Bankruptcy Really Work?
Chapter 7 is the simpler of the two most common bankruptcy chapters which are Chapter 7 and Chapter 13. It’s often called the “start over” or “fresh start” bankruptcy provision. The reason for this is that it allows one to wipe away all most all unsecured debts that a person owes. Unsecured debts are debts that aren’t attached to a particular thing that one owns like a debt on a house which is a mortgage or car loan which is secured by the car. Typical examples of unsecured debt are unpaid medical bills, credit card debts, education loans and other similar bills. What it won’t do is eliminate the debt related to mortgages, car and boat loans and other things that may have been purchased and currently have a lien on them.
You are a good candidate for Chapter 7 if you don’t own a lot of things like homes and cars. For example if you live in an apartment or rented home and are covered up in credit card debt, then Chapter 7 seems to fit your circumstances. Another example that works well for Chapter 7 is if you have large medical bills that have become virtually impossible to pay but you also have a home. It can often be worked out that you can keep your home but the medical bills will be eliminated. If you substitute credit card bills for the medical bills, the same would apply.
Chapter 7 is designed to liquidate or eliminate debts and give you a new start. You can almost always keep your home and your car assuming you need it. This is the bankruptcy chapter that works best for most people with limited or no assets and lots of debt.
The key to knowing what really works for your individual situation is getting an appointment with a bankruptcy attorney in your local area. They can confirm if Chapter 7 works for you or if another bankruptcy provision is needed.
You are a good candidate for Chapter 7 if you don’t own a lot of things like homes and cars. For example if you live in an apartment or rented home and are covered up in credit card debt, then Chapter 7 seems to fit your circumstances. Another example that works well for Chapter 7 is if you have large medical bills that have become virtually impossible to pay but you also have a home. It can often be worked out that you can keep your home but the medical bills will be eliminated. If you substitute credit card bills for the medical bills, the same would apply.
Chapter 7 is designed to liquidate or eliminate debts and give you a new start. You can almost always keep your home and your car assuming you need it. This is the bankruptcy chapter that works best for most people with limited or no assets and lots of debt.
The key to knowing what really works for your individual situation is getting an appointment with a bankruptcy attorney in your local area. They can confirm if Chapter 7 works for you or if another bankruptcy provision is needed.
