Chapter 7 Bankruptcy
Chapter 7 bankruptcy ,also known as straight bankruptcy or liquidation bankruptcy, typically results in most of your debts getting discharged in about three months. While it is called “liquidation”, most people mistakenly believe that they are going to lose all of their possessions by filing. That is not true. Imagine that you are debt free in only three months- that’s what happens in most chapter 7 bankruptcy cases. Additionally, filing either chapter 7 or chapter initiates the automatic stay, which gives you immediate relief from your creditors, stopping lawsuits, garnishments, repossessions and foreclosures. Your creditors are not even allowed to send you a bill in the mail or call you on the phone- that’s right, an end to those non-stop phone calls. Along with several other technical exceptions, all of your debts will be discharged except for a). Child support b). Student loans c). Recent taxes (3 Years) d). Most traffic tickets and criminal fines.