Chapter 7 Bankruptcy

Often referred to as “straight bankruptcy,” Chapter 7 bankruptcy is a process, organized under federal law, that provides consumers with the opportunity to discharge their unsecured debts. Common debts eliminated by filing for Chapter 7 bankruptcy include: credit cards, medical bills, personal loans and mortgage debts. When a chapter 7 case is filed, all of the debtor’s property is temporarily under supervision of the bankruptcy court and a case trustee. Property that is considered “exempt” is retained by the debtor. Conversely, property that is “nonexempt” is subject to sale by the bankruptcy trustee with the proceeds distributed to creditors. One of the important functions of a bankruptcy attorney is to help you classify whether your property is exempt. Exemption laws vary depending on which jurisdiction you live in. It is important to note, that as a practical matter, most people are able to shed their unsecured debts through Chapter 7 with out losing any property. A typical chapter 7 bankruptcy case usually lasts between 4 to 5 months. At the end of the process, the Bankruptcy Court issues a discharge that operates as a permanent injunction preventing creditors from seeking to collect on debts that were included in the bankruptcy. Below, you’ll find hundreds of articles that have been written on the subject of chapter 7 bankruptcy. If, after browsing through these posts, you don’t find the answers that you need, we invite you to post a question to our QA forum. Thank you for visiting the National Bankruptcy Forum.

US Medical Debt Statistics

10 Statistics about US Medical Debt that Will Shock You

Medical debt is a big problem in the United States. For years, it’s been the No. 1 reason people file for bankruptcy — even though the more common assumption is that those struggling financially have been overspending in other areas of their life. Luckily, bankruptcy can be a helpful solution for a lot of people. It’s […]

Alabama Bankruptcy Exemptions

Chapter 7 Bankruptcy in Alabama: What You Need to Know

Aside from football, Alabama might best be known for its rich agricultural history, the birth of Booker T. Washington’s “Atlanta compromise” in the civil rights movement, and being a big employer for colleges and the military. The Heart of Dixie grew its economy after World War II to diversify its interests past farming, though per capita […]

Debt Collectors NYC

NYC’s Worst Debt Collectors: Who are They?

Over 20 million people live in one of our country’s biggest regions, metropolitan New York. With that many people, it’s likely that millions are in financial dire straits. And where there is financial misery, there are debt collectors. Who are the Big Apple’s most prolific debt collectors? Are they the major players in the debt collection […]

Colorado Bankruptcy Exemptions Chapter 7

Chapter 7 Bankruptcy in Colorado: What You Need to Know

Last updated May 18, 2017. Colorado is a gorgeous state. If you’re the outdoorsy type, you’ll feel right at home here among the Rocky Mountains, the desert, and river canyons. If you love a robust downtown, you’ve got Denver, which has consistently ranked as one of the top places to live in America. However, while Colorado […]

Alaska Bankruptcy Exemptions

Chapter 7 Bankruptcy in Alaska: What You Need to Know

Last updated May 18, 2017. While the United States has mostly come out of the Great Recession, Alaska is still experiencing its own due to a steep drop in oil prices and resulting budget crisis in 2015. According to a recent economic confidence survey, Anchorage residents are feeling more pessimistic about the local economy today than they […]

Livestock Bankruptcy Chapter 12 Farmers

Can I Keep Livestock and File Bankruptcy?

People who are considering bankruptcy often wonder whether they will be able to keep their property, and farmers are no exception. People who keep livestock and grow crops for a living are often worried that by filing for bankruptcy, they will end up putting themselves in a position where they will be forced to part […]

Household Debt Bankruptcy Trends 2017

Household Debt Near Great Recession Level: What Does it Mean?

Although bankruptcy filings have been trending downward for years, household debt is expected to hit a new record in 2017. It may seem like a big number, but fewer than 800,000 people filed for bankruptcy in the U.S. last year. Just six years ago, that amount was double. Will household debt start to catch up […]

Massachusetts Bankruptcy Exemptions Chapter 7

Chapter 7 Bankruptcy in Massachusetts: What You Need to Know

You’re in debt and are doing research online, so you’ve probably already encountered some general information about bankruptcy. But what do you need to know about bankruptcy if you’re filing in Massachusetts? Before you dive into your Massachusetts research, make sure that MA law applies to your case. If you just moved to MA, your […]