Chapter 7 Bankruptcy Questions Answered

Chapter 7 Bankruptcy Questions Answered """Have you recently filed for Chapter 7 bankruptcy?"" Are you contemplating declaring bankruptcy? If so, you probably have numerous inquiries and worries. This is perfectly normal, and in fact, it indicates that you are approaching your bankruptcy with intelligence and maturity. You should consult with your bankruptcy attorney to learn all of the specifics and laws that apply to your case, but the following are some of the most frequently asked questions regarding chapter 7 bankruptcy.

Will Insolvency Destroy Everything?

As your bankruptcy attorney will explain, chapter 7 can discharge the majority of personal debts, but there are exceptions. Child support, alimony, taxes, student loans, and debts resulting from unlawful activity are examples of non-dischargeable debts. The good news is that chapter 7 has the ability to essentially eradicate everything else. In most jurisdictions, any secured debt is therefore dischargeable.

Will Chapter Seven Prevent Foreclosure?

This is another concern that clients frequently pose to their bankruptcy attorney. The brief answer is ""yes."" During the bankruptcy procedure, Chapter 7's ""automatic stay"" prohibits creditors from foreclosing on your property. The only caveat is that the lender may file for relief from the automatic stay and resume the foreclosure process if the court grants the request. If this is the case, your bankruptcy attorney will assist you in reaching a settlement with your creditor.

Can I Obtain Credit Following Chapter 7?

After Chapter 7 bankruptcy, you may be able to obtain credit, but your attorney will warn you that you are likely to receive poor interest rates and fees. Before allowing you to pursue other options, credit companies will most likely issue you a secured credit card.

Will Collection Agencies Stop Calling?

During the bankruptcy procedure, bill collectors and creditors are required by law to stop calling and contacting you. Your bankruptcy attorney and trustee will communicate with your creditors directly. By registering for Chapter 7 bankruptcy, you are essentially establishing a temporary protection for yourself.

What If I Leave Something Behind?

A common concern is forgetting to identify a creditor on chapter 7 bankruptcy documents. You will have the opportunity to file a timely amendment if you neglect a creditor, but you should work closely with your bankruptcy attorney to ensure that nothing is overlooked the first time. It is prudent to identify all creditors, even if you do not believe you owe them any money.

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