Understanding Chapter 7 Bankruptcy

The decision to file for Chapter 7 bankruptcy can offer a lifeline to those who are struggling with the pressures of unmanageable payments. While it is helpful, there are many who don’t fully understand what is involved in this process. Chapter 7 bankruptcy is a process where a court wipes away most types of unsecured debt. There are several frequently asked questions and answers to help get a better understanding.

Which Debts Can be Eliminated?

Most unsecured debts like credit card balances, past due utilities and past due rent will be wiped out after filing Chapter 7, there are some exceptions that should be noted. Student loan debt is an example of something that cannot be discharged. Also, money owed to the IRS as well as late payments towards child support will not disappear after filing Chapter 7 bankruptcy.

How Long Does It Take?

Each situation is different, so every …