chapter 7

When you hear the word "bankruptcy," you most likely think of a hapless individual or business that has run out of money and who has decided to seek protection in the mysterious confines of a federal bankruptcy court.

In fact, the term "bankruptcy" contemplates several kinds of financial relief for debtors.  The most common type of proceeding is known as a Chapter 7 bankruptcy.

Called Chapter 7 because its rules are set out in Chapter 7 of the United States Bankruptcy Code, a Chapter 7 allows an individual or business to completely eliminate many kinds of debt - credit card bills, medical debt, and other unsecured claims are the most common types of debt eliminated.  In addition Chapter 7 allows debtors to cancel contracts and leases for the purpose of obtaining a fresh start.

Alas, there are no free lunches in life and Chapter 7 bankruptcy has its downside.  It will severely damage a filer's credit profile and many debtors will have to give up to their Chapter 7 trustee any cash in the bank or assets that can easily be converted to cash.

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Latest blogosphere posts tagged “chapter 7”

• Chapter 7 Bankruptcy: What You Need To Know

  
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• Is Chapter 7 Bankruptcy Right For You?

  
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• About Chapter 7 Bankruptcy

  
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  www.legalhelpers.com/ – In most Chapter 7 cases, your debts are completely discharged and you can keep your personal property. Get a free evaluation – 1-800-260-1402 If you think there are more people filing for Chapter 7 bankruptcy this year than in the past you are correct. With Chapter 7 bankruptcy your ...
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• Why can’t everyone avail the benefits of chapter 13 bankruptcy?

  
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