What is a Chapter 7 (Straight Bankruptcy)?
In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt” property which the law allows you to keep. In most cases, all of your property will be exempt. But property which is not exempt is sold, with the money distributed to creditors. If you want to keep property like a home or a car and are behind on the payments on a mortgage or car loan, a chapter 7 case probably will not be the right choice for you. That is because chapter 7 bankruptcy does not eliminate the right of mortgage holders or car loan creditors to take your property to cover your debt.
• What is chapter 13 bankruptcy? (Reorganization) • What does it cost to file for bankruptcy? • Where is a chapter 7 case filed? • How long does the chapter 7 process last? • What are the benefits of filing for bankruptcy? • What are the limitations of filing for bankruptcy? • Is a chapter 7 (straight bankruptcy) bankruptcy the right choice for a debtor? • Is a chapter 13 bankruptcy (Reorganization) the right choice for the debtor? • Who pays for a person’s debts when they file for bankruptcy? • Are the names of persons who have fild under chapter 7 published? • What else should I know about filing for bankruptcy? 1. What is a chapter 7 bankruptcy? Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least unti
