CHAPTER 7 Bankruptcy
A Chapter 7, also known as ”liquidation”, “straight” or a “debt wipe-out”, is intended to relieve an individual from the burden of most ordinary debts. The debts that fall into this category are traditionally credit cards, medical bills, personal loans and other unsecured debts. An “unsecured” debt is one that has no attachment to a material form of collateral. Notably, Chapter 7 debt relief is the most common form of bankruptcy, as it allows the individual filing to feel most financial freedom from debt.
Benefits of a Chapter 7
Typically, Chapter 7 cases resolve within four to six (4-6) months of their initiation and filing date. As soon as you are in receipt of a Bankruptcy Discharge, your obligation to the discharged debt is over. This type of relief is the speediest and easiest possibility, though not everyone is qualified.
In addition, as soon as the Chapter 7 petition is filed, you will no longer get harassed while you are at work, or home by any collection agencies or bill collectors. This will all stop because there is an “automatic stay” that protects you from these agitating phone calls. On top of this benefit, any foreclosure or eviction actions are also temporarily stayed.