Bankruptcy laws were created to give people a fresh start. Chapter 7 bankruptcy is also called liquidation and is the most common kind of bankruptcy. If you are overwhelmed with debt and are considering bankruptcy, find one of the best bankruptcy lawyers in your area for information and advice. Here are frequently asked questions about Chapter 7 bankruptcy.
What is Chapter 7 bankruptcy? Chapter 7 bankruptcy gets rid of unsecured debt so you can start over. It is typically recommended for people with a lot of credit card debt and few assets.
Can anybody declare bankruptcy? Basically, yes. The laws apply to everyone except in cases of fraud where people run up their debt purposefully thinking they will declare bankruptcy later.
How long does the process take? From the time you file until you get your discharge is between 90 and 120 days.
How will my bankruptcy affect my credit score? It isn’t as bad as people imagine.When you lose most of your debt, your credit score will go up. Because of this, you can recover from bankruptcy in a short amount of time.
Are any debts not covered by a Chapter 7 bankruptcy? Yes, there are a few. Debts that are not dischargeable include: student loans, criminal fines, recent income taxes, real estate taxes, alimony and child support.