Chapter 7 Bankruptcy Information

Chapter 7 bankruptcy is more commonly used by individuals who have only basic property, with little or no money beyond what's needed for monthly essentials.  It is essentially the "clean slate" bankruptcy that allows a consumer to wipe clean the past and start over.  If a consumer qualifies for bankruptcy by demonstrating that they do not possess the income or assets to pay their debts and cover their essentials, the consumer can ask a court to discharge each debt.  Once discharged, the debts are no longer payable by the consumer.  This gets the collectors to go away. 

The process for Chapter 7 bankruptcy moves fairly quickly, and your debts may be discharged within just a few months.

The other advantage of the chapter 7 bankruptcy is the "automatic stay."  This means once the petition is filed, each and every creditor gets notice and must stop all attempts to collect money from you.  This includes any lawsuits that have been filed.  If a lawsuit is pending, the case must immediately be held off until it is determined that you are discharged from bankruptcy or not.  

 View the Chapter 7 Bankruptcy Laws