Chapter 7 Bankruptcy is an elimination of some, or in most cases, all of your unsecured debt. At Taibi & Associates, we like to refer to it as a fresh start. We call Chapter 7 bankruptcy a fresh start because in as little as 120 days from the bankruptcy filing, you will receive your formal discharge and can begin to re-establish your credit. Most debts, but not all debts, can be eliminated in Chapter 7. Unsecured debts are usually liquidated or wiped out in Chapter 7 Bankruptcy. Debts that qualify include:
* Credit Card Debt * Bank Loans (Unsecured) * Personal Loans * Lawsuits * Medical Bills *
Chapter 7 can also stop wage garnishment and judgments.
Do not feel guilty about filing Chapter 7 Bankruptcy. Bankers and credit card companies are making billions of dollars off credit card interest. These companies are often clearing 21 percent or higher in interest rates and are also loaning to individuals regardless of their ability to repay their debts, preying on the honest and good moral nature of the consumer.
Many times, things in our lives change, such as loss of employment or illness, to name a few, and anyone can find themselves in a bad situation. When this happens, do not prolong your decision to file bankruptcy, as this can lead to damaged families, relationships, and sometimes can have very costly and negative long-term effects on your credit.