Chapter 7 Bankruptcy FAQs
Get Answers to Your Bankruptcy Questions at Chapter7.Me
Chapter 7 bankruptcy code can be confusing at times. When you’re attempting to deal with tough financial problems, it can be difficult to find the time to look for real debt-relief answers.
We here at Chapter7.Me aim to provide you with up-to-date and relevant Chapter 7 bankruptcy information. If you’re considering filing bankruptcy and have questions about the Chapter 7 bankruptcy process, Chapter7.Me is the resource for you.
Listed below are some frequently asked Chapter 7 bankruptcy questions that we will address on this page.
- What may Chapter 7 bankruptcy do for me?
- What is a Chapter 7 debt discharge?
- Can I file Chapter 7 bankruptcy?
- What about the new bankruptcy law?
- Will filing Chapter 7 bankruptcy affect my credit?
- Which is better for me: Chapter 7 or Chapter 13 bankruptcy?
Do You have Additional Chapter 7 Bankruptcy Questions?
At Chapter7.Me, we want to answer all of your Chapter 7 bankruptcy questions; however, we know that you may want to speak directly with a professional about your specific financial situation. For that reason, we are sponsored by an extensive network of participating bankruptcy lawyers ready to listen and consult with you.
To connect with a local bankruptcy lawyer, fill out our free bankruptcy evaluation form or call 1 (888) 632-0501.
What Can Chapter 7 Bankruptcy Do For You?
If you’re facing mountains of debt, Chapter 7 bankruptcy can be a strong tool you can use to reclaim your life. Among other benefits, Chapter 7 bankruptcy may:
For more information that can help you decide if Chapter 7 is right for you, visit the following section:
Is Bankruptcy Right for Me?
What is a Chapter 7 Debt Discharge and What Does It Mean to You?
After the Chapter 7 bankruptcy requirements are completed, the bankruptcy filer receives a Chapter 7 debt discharge. The Chapter 7 debt discharge releases the former debtor from personal liability for the debts listed in the Chapter 7 bankruptcy papers. Creditors can no longer try collect on those debts. The bankruptcy filer’s slate is essentially “wiped clean.”
Could Chapter 7 be right for you? Begin our free attorney evaluation form
Can You File Chapter 7 Bankruptcy?
Keep in mind that not everyone qualifies to file Chapter 7 bankruptcy. You might be a good candidate for filing Chapter 7 bankruptcy if you:
- rent an apartment or home;
- own a home but have little equity in it;
- have little property except for the living basics like appliances, a car, furniture and clothing;
- are overwhelmed by bills;
- are having a hard time making you basic ends meet; and/or
- have very little disposable income at the end of the month.
For more information on whether you qualify to file Chapter 7 bankruptcy, check out Chapter7.Me’s Chapter 7 Bankruptcy Eligibility section.
What About the New Bankruptcy Law?
There have been recent changes to the U.S. Bankruptcy Code. There also has been a lot of talk about how the new law prevents people from filing Chapter 7 bankruptcy—this is not necessarily true in all cases.
Although, the new bankruptcy law has prevented some people from filing for Chapter 7 bankruptcy protection, most people are not turned down from filing bankruptcy. A bankruptcy attorney can tell you if the new bankruptcy law will affect your case.
For more information on the requirements in the new bankruptcy law, please visit our Chapter 7 Bankruptcy Requirements section.
Will Filing Chapter 7 Bankruptcy Affect Your Credit?
By filing Chapter 7 bankruptcy, you could have a chance to regain control of your life and stop the creditors from contacting you. Chapter 7 bankruptcy was designed to eliminate debt.
You should know that filing Chapter 7 bankruptcy might affect your credit because it stays on your record for ten years. During that period, it may negatively affect your credit; however, it can also improve your credit. For example, when overwhelming debt is removed from a person’s credit report through a Chapter 7 bankruptcy filing, he or she may receive a positive credit boost.
When you think about it, your credit rating probably wasn’t the best it could have been when you decided to file Chapter 7 bankruptcy. A Chapter 7 bankruptcy may help clear your financial slate and may give you the opportunity to rebuild your credit.
Which is Better For Me: Chapter 7 or Chapter 13 Bankruptcy?
Chapter 7 and Chapter 13 bankruptcies have major differences. Depending on your current financial situation, one may be a better option for you than the other.
For example, if you own a home with equity, have a steady income and just need extra time to pay off your debt, Chapter 13 bankruptcy may be a good option for you.
On the other hand, if you have little property or little equity in your home, are having difficulty paying for your necessities and are looking to eliminate your overwhelming unsecured debt, Chapter 7 bankruptcy may be a better option for you.
Check out our Chapter 7 and Chapter 13 comparison for more information on which type of personal bankruptcy may be better for you.
To learn more about what bankruptcy may be able to do for you, get connected with a local bankruptcy lawyer by filling out our free bankruptcy case evaluation form or by calling 1 (888) 632-0501.