Filing Chapter 7 bankruptcy can eliminate most unsecured debt. Unsecured debt is debt that is not secured by any kind of property. This means that if you don’t make a payment, there is no property that can be taken back by the creditor. Unsecured debt is typically credit card debt, medical bills, utility bills, and debts for just about any other type of service or procedure. There are some debts that are unsecured debt and are not eliminated by filing a chapter 7 bankruptcy. These debts include recent taxes, student loans, child support, debts incurred by fraud, and debts owed to a municipal entity for a fine or other fee.
Most people are struggling today due to credit cards and medical bills. If you are like most consumers who are thinking of filing for bankruptcy under Chapter 7, then you are struggling with multiple credit cards, multiple medical bills, and an assortment of other types of miscellaneous debt. Chapter 7 is going to help achieve the result of eliminating the majority of your debt. Chapter 7 is going to let you get back on your feet financially, reestablish yourself in the community, and be able to provide for your future and for your family once again. If you are struggling financially with unsecured debt, then chapter 7 is going to be your answer.
If you have secured debt such as a mortgage or a vehicle payment, then you can still file for chapter 7 bankruptcy and make an election with regard to those debts as far as secured items. For example, if you are a homeowner, you can keep paying your mortgage after you file for chapter 7 bankruptcy. If you own a vehicle or making payments on a vehicle, you have the ability to reaffirm that debt which will survive the bankruptcy. Please keep in mind that you are not required to reaffirm on your home. You can simply make regular payments to your mortgage company and you will be able to retain your home through your bankruptcy case and beyond. With regard to your vehicle, you have to make a decision. You can decide to reaffirm the debt on the vehicle and be obligated going forward or you can surrender the vehicle in exchange for a fresh start. You also have the ability to redeeem the vehicle which is to pay the full market value of that item in one lump sum. Since most people do not have the ability to redeem the vehicle, the more common option is to reaffirm and continue to make monthly payments on the vehicle.
By eliminating the majority of unsecured debt, an individual or couple can resume their financial life without interruption. Chapter 7 will bring an end to collection calls. Chapter 7 will bring an end to court action to collect a debt. Chapter 7 will basically allow for a nice fresh start. If you are someone who is struggling financially, and you feel you need that fresh start, I strongly suggest that you speak with a chapter 7 bankruptcy attorney to see if you can be helped. My office is available six days a week and I could be reached directly at area code 847-520-8100.
