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.

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 […]

Bankruptcy Filings at All-Time Low in 2016

How many people filed for bankruptcy in 2016?

Bankruptcy filings are continuing to decline, with fewer than 800,000 people filing in federal courts last year. All bankruptcy cases are handled in federal courts, per the U.S. Bankruptcy Code. Although 800,000 seems like a lot, it pales in comparison to the height of the economic collapse in September 2010, which saw nearly double the amount […]

New York City Bankruptcy State Exemptions Chapter 7

Chapter 7 Bankruptcy in New York: What You Need to Know

Last updated March 29, 2017. If you are considering filing for protection under the federal bankruptcy laws, the first thing that should be done is to engage the services of a knowledgeable attorney. This post is a description of things you might want to know about bankruptcy in New York City, as well as the […]

How bankruptcy and debt solutions impact your credit score

When you’re in debt and trying to decide what action to take, you may be concerned about how to protect your credit score. That’s often one of the last barriers to deciding to file for bankruptcy – so how much does bankruptcy affect your score? The answer may surprise you. Bankruptcy certainly does have an […]

Can I pay back family before bankruptcy?

In times of difficulty, we naturally turn to family and friends for help. The same holds when those difficulties are financial. Family and friends know you and understand your troubles; they’ll be willing to lend you a hand even when banks won’t. They trust you regardless of your credit score. If you borrow from people […]

Gift or loan, and why does it matter for bankruptcy?

When you’re struggling with debt, it’s natural to turn to friends and family for help. They know you and they trust you, making it simpler and easier to seek financial aid from them than from a bank. If your financial difficulties continue and you decide to file for bankruptcy protection, what happens to the friends […]

IRS Sanctioned for Willful Violation of Discharge Order

The Bankruptcy Discharge Applies Even To The Federal Government Creditors who attempt to collect on debts that have been discharged in bankruptcy often find themselves in serious hot water with the Bankruptcy Court.  Bankruptcy judges take the discharge order very seriously and will dish out punishment to those who ignore its prohibitions against continued collection […]