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
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