Types of Bankruptcy
• Chapter 7 Bankruptcy
Chapter 7 type bankruptcy has many names.
It is sometimes referred to as “straight
bankruptcy.
” This is the type most people think of when they think of bankruptcy.
It is the most
common...
More
Types of Bankruptcy
• Chapter 7 Bankruptcy
Chapter 7 type bankruptcy has many names.
It is sometimes referred to as “straight
bankruptcy.
” This is the type most people think of when they think of bankruptcy.
It is the most
common type of bankruptcy.
It is designed to help people get a fresh start, to start over, to give
individual consumers and families a chance for a new beginning financially.
The beautiful thing
about Chapter 7 is that it wipes out your “unsecured” debts, that is, it wipes out your obligation
to pay certain types of debts, like credit cards and medical bills.
Filing a Chapter 7 immediately
stops all collection activities against you.
It stops all creditors from bothering you or suing you.
Certain types of debts are not wiped out however.
Student loans, some taxes, and parking
tickets, will survive a Chapter 7 bankruptcy.
Another name for Chapter 7 is Liquidation.
That is because when you file Chapter 7 the Court‐
a
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