Chapter 7 Bankruptcy is a way to wipe out your debt by grouping all your debt together and in one shot creating a fresh start for yourself. Before filing Bankruptcy you should always meet with a qualified attorney, like Ted Machi to consider all your options. With Chapter 7, you can wipe out debt such as credit cards, lawsuits, mortgages, medical bills and more.
When you file Chapter 7 you are not required to make repayments. Your debts are completely wiped out. You are allowed to keep much of your property with Chapter 7. This is called an exemption. Exemptions are made for types of items that you need for your survival, like food, clothing, shelter, and transportation. These exemptions do vary case to case and you should have that conversation with an attorney like Ted Machi to understand what you will keep. On average this process can take from three to five months.
There are some debts that you cannot shed in a Chapter 7 Bankruptcy and those debts are called non-dischargeable. You should be aware of them and when speaking with your attorney double check the circumstances for each one. Non-dischargeable debt can include most taxes, child support, court ordered fines and penalties, student loans and more.
After you successfully file, you will be free of all creditor calls. They must comply with bankruptcy law and stop calling. Any lawsuits that are pending will halt. Once you have a fresh start it’s important to protect your new credit record and build good credit.
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