CHAPTER 7 BANKRUPTCY

Chapter 7 is liquidation bankruptcy.  A Chapter 7 discharge can only be granted every 8 years.  The entire Chapter 7 Bankruptcy process takes about 4 months in an uncomplicated case.

Typical debts that can be discharged in Chapter 7 are credit cards, old rent, personal loans, old cell phone bills, pay day loans, vehicle repossessions, medical bills, and many other types of debt.  Not all types of debt can be discharged in Chapter 7, a wider range of debts are dischargeable in Chapter 13.

Chapter 7 filers need to be eligible by being below certain income thresholds and having few assets.  The court considers your overall financial circumstances.  Chapter 7 bankruptcy is liquidation bankruptcy which means that assets could be sold to pay your creditors.  Individuals who do not qualify for Chapter 7, or would face certain risks, can usually obtain bankruptcy relief through Chapter 13 instead.