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.
Student loan debt and bankruptcy The topic of student loan debt and bankruptcy: most every bankruptcy and personal finance related website out there has written about it on numerous occasions. However, the rules are worth repeating because it is still an unreasonable area of the law that was created to address the concerns of a […]
Filing chapter 7 bankruptcy in Texas: different from the rest of the country? The state of Texas takes pride in doing things differently than the rest of the country. However, when it comes to bankruptcy, Texans will find some similarity in the process regardless of which region they file in. The bankruptcy code is federal […]
Am I Protected by Arizona’s Anti-Deficiency Law After Foreclosure? When most families purchase a home, they don’t envision ending up facing a foreclosure sale, but in states like Arizona where the housing market has been particularly hard hit, foreclosure is an all too common event. In cases where a home has plummeted in value, borrowers […]
Be forewarned, the following journey through chapter 7 bankruptcy law is a bit technical, so if you are considering filing for chapter 7 bankruptcy, consult a bankruptcy attorney. Chapter 7 Bankruptcy: It All Begins A chapter 7 bankruptcy case begins with the debtor filing a petition with the bankruptcy court serving the area where the […]
Why is My Credit Card Company Suing Me? You’ve received a summons and complaint, your credit card company has filed a lawsuit. What to do now? Should you file for bankruptcy? First, understand that credit card debt is a type of unsecured debt, meaning that if you can’t make payments, your credit card company cannot come after […]
This post was originally published in July of 2009, but our editors feel it still has value in today’s market. Should I use retirement to pay a mortgage? Twice in the last two days I have had the same discussion with two prospective clients. Each client owned a house that at the height of the […]
Will you owe a deficiency after foreclosure? A common misconception among consumers is that after foreclosure they will not owe their mortgage lender. Many homeowners who go through foreclosure are surprised to learn that they still owe money on their house, even though they no longer own it! Most mortgage lenders require borrowers to personally […]
Price Shopping Legal Services is Not Always a Great Idea Well, the first question, first! Choosing your Bankruptcy attorney is an important task, so treat it as such. Many times, bankruptcy attorneys are the only attorneys that our clients have ever seen, so it’s a new experience, on top of the financial stress. This can […]
Chapter 7 bankruptcy: The Basics Whether you’re filing bankruptcy in Ohio or another part of the country, the basics of chapter 7 bankruptcy are very similar. In exchange for the forgiveness of the vast majority of your debts, including the discharge of all of your unsecured debts, you agree to put your assets temporarily under […]
How bankruptcy affects car and house payments If you are considering filing for bankruptcy your first questions will likely revolve around how the process will affect your property. Will I be able to keep my car? Will I be able to stay in my home? A rudimentary understanding of the difference between unsecured and secured […]