America's Bankruptcy Courts

Chapter 7 Bankruptcy

.
Chapter 7 Liquidation

Too many credit card bills?  For immediate help, 
call toll free for alternative to bankruptcy.

***
***

Chapter 7 bankruptcy or "straight bankruptcy" is the most popular form of bankruptcy because it allows the debtor to "wipe the slate clean" and start all over. This code is available to individuals, couples, corporations and partnerships. Discharge normally occurs within 4-6 months after filing. 

Non-exempt assets will go under the care of a trustee who liquidates them to satisfy creditors in order of their secured interests. Any wages a debtor earns is off limits to creditors who had a vested interest on the date of filing.

This code is generally used by those who lack sufficient income to cover outstanding debts after taking care of basic necessities, and who have no hope of ever repaying their creditors. There are certain obligations that are not dischargeable, for example:

  • Alimony and child support

  • Back taxes under 3 years old and student loans 

  • Recently made purchases for substantial amounts

  • Property executed contracts involving titles or liens

Before considering chapter 7 you should take an inventory of the types of debt owed. This will give you a better idea if filing will give you the relief you seek.

Who should consider chapter 7.
* If there is no hope of repaying any of your debts.

* If there are no cosigners involved, 

* If court action by creditors is imminent, filing stays all collection proceeding while in court.

Downsides
Ruins your credit. If you have a cosigner, they will still be responsible for the debt you discharge. Pay attorneys, court and filing fees upfront. 

Alternatives
If you can't discharge enough of your debts or have to sacrifice too much property you may want to consider chapter 13 or a credit counseling / debt consolidation repayment plan.

Introduction

Chapter 7 Considerations   Chapter 11 Considerations

Chapter 13 Considerations   Long-Term Effects

Bankruptcy Courts For All 50 States Bankruptcy Terms

Reach Us

America's Bankruptcy Courts
All rights reserved. 2002


Introduction

Chapter 7 Bankruptcy

Chapter 11 Bankruptcy

Chapter 13 Bankruptcy

Long-Term Effects

Bankruptcy Courts

Bankruptcy Terms

Reach Us

Credit Card Bills? 

Too much debt? Trouble keeping up? Considering filing? We have a better alternative. 

*** Click Here ***

.

chapter 7 bankruptcy