Articles Tagged with Ch7

Filing a chapter 7 bankruptcy can eliminate unsecured debts such as credit cards or credit accounts, all medical bills, any payday loans or other types of signature loans, etc.  It stops lawsuits, no matter what stage the lawsuit is in.  It stops wage garnishments.  It stops harassing phone calls and letters from debt collectors.  It gives you a new beginning, a true, financial fresh start.

In some instances, it may be advisable to file Chapter 7 bankruptcy to stop repossession, foreclosure, student loan collection efforts, and other types of debt related activity that might normally be handled through a Chapter 13 bankruptcy.  It’s a matter of what you need short term and long term.  Your attorney will discuss the pros and cons of both types of bankruptcy.

Being free from overwhelming debt is possible for you.  Take advantage of the opportunity the law allows to be debt free. The government understands that people have financial problems because they have experienced a job loss, hours cut, a failed business, divorce, illness, severe injury, or other unforeseen financial hardship.

Most unsecured debts will be wiped out in a Chapter 7 bankruptcy.  Unsecured means that the debt does not have any property pledged as security.  This includes credit cards, medical bills, lines of credit, payday loans, overdraft protection, signature loans, and personal loans.  There are certain types of unsecured debts that cannot be eliminated in bankruptcy.  The two most common types of debt that people think cannot be done away with are student loans and taxes.  These can be wiped out, but only if you meet special circumstances.  Student loans are not wiped out in bankruptcy, unless you can prove that paying them would create an undue financial hardship for you or your family.  Income tax debts can be eliminated, under certain circumstances, if they are more than 3 years old before the date you file the bankruptcy.