A
Chapter 7 bankruptcy is designed to protect debtors by liquidating most
unsecured debt. It also provides debtors with an opportunity to start
afresh and take control of their financial future. Under Chapter 7 of
the Bankruptcy Code, all non-exempt property of the debtor is sold and
the proceeds of the same are distributed to the creditors. In most cases
where Chapter 7 is brought into force, however, the debtor has no
assets to lose, therefore the fresh start takes place relatively fast.
Chapter 7 bankruptcies are the most common form of bankruptcy filing, and it accounts for as much as 65% of all Consumer Banking filings. This is one of the fastest ways of starting again, and more so if there are no objections from any of the parties involved. Ordinarily, most debts are discharged within months of the attorney filing a bankruptcy petition.
Under Chapter 7 Bankruptcy, the debtor receives a discharge on all dischargeable debts. There are, however, 19 general classes of debt, such as child support, most taxes and student loans that are non-dischargeble.
An added advantage with Chapter 7 bankruptcy is that by signing a reaffirmation agreement a debtor can continue to pay for a car loan or a mortgage on their home. This agreement is in place because, as per the US Bankruptcy Code, a debtor could be allowed to retain some or all of his property.
Chapter 7 bankruptcies are the most common form of bankruptcy filing, and it accounts for as much as 65% of all Consumer Banking filings. This is one of the fastest ways of starting again, and more so if there are no objections from any of the parties involved. Ordinarily, most debts are discharged within months of the attorney filing a bankruptcy petition.
Under Chapter 7 Bankruptcy, the debtor receives a discharge on all dischargeable debts. There are, however, 19 general classes of debt, such as child support, most taxes and student loans that are non-dischargeble.
An added advantage with Chapter 7 bankruptcy is that by signing a reaffirmation agreement a debtor can continue to pay for a car loan or a mortgage on their home. This agreement is in place because, as per the US Bankruptcy Code, a debtor could be allowed to retain some or all of his property.
