Chapter 7 Bankruptcy
What is a chapter 7 bankruptcy?
The technical definition of bankruptcy under the federal bankruptcy statute is:
- a discharge and release of the debtor from personal liability for certain specified types of debts.
In plan, simple, easy to understand language, the debtor is not required by law to pay any debts that are discharged.
This action will then operate as a permanent order directed to the creditors of the debtor that they refrain from taking any form of collection action on discharged debts. This can include:
- Any type of lawsuit filled against the debtor
- Any communications with the debtor, such as:
- Telephone calls
- Harassing letters
- Any personal contact
There are certain circumstances that will not relieve the debtor. For example property used to secure a debt may still entitle the creditor to enforce a lien to recover the secured property.
My strong recommendation is that if you are considering bankruptcy for any reason, you should contact a local bankruptcy attorney and find out ALL of your options. You can visit LegaBerry’s Bankruptcy Lawyer Directory to find local bankruptcy attorneys and see if you can find one that you would like to talk to. Ask if they are willing to give you a FREE consultation and at the very least check you options.
Good luck…Thomas
I recently went through a difficult situation with my business. Unfortunately, my options were limited due to the mounting business expenses and collection agencies were calling and calling. I could not pay them back in a time that was reasonable to them so I read a lot about Ch. 7 & 13 Bankruptcy’s. It was a difficult decision but needed to do what was best for my family and business. I sought legal representation. Take Thomas’ advice, Bankruptcy cannot be accomplished without an attorney. Seek professional advice and review your options to a better tomorrow. I did where my attorney negotiated my debt down to reasonable monthly payment and building my credit again!
Jason,
I am glad to hear that you found a solution for your issue. Also thank you for sharing with the readers your story.
Thomas