Chapter 7 Bankruptcy - Understanding What You Need to Know


These days it seems like all anyone can talk about on news and commentary shows is the state of the economy. And, if you're one of the millions of Americans that are currently struggling to keep up with their credit card debt, mortgage and car payments, private loans and daily living expenses, it's probably the only thing that you can think about as well. No one likes to admit that they might have been a little overextended with their finances, but the truth is that no one is exempt from credit cards and banks that promise too much or don't present all the facts before you signed on the dotted line. If you're ready to consider taking steps to eliminate your debt, you've got to educate yourself about Chapter 7 bankruptcy.

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If you've been avoiding the word bankruptcy, it's time that you got real and weighed the alternatives. Is there more pride and honor in allowing the bank to repossess your house and your car? Would you rather try to explain to your kids that you have to move because you're unwilling to ask for help? Chapter 7 bankruptcy doesn't have to mean the end of the world; it's just the beginning of getting your life back on track.

Many people are unfamiliar with the actual terms for Chapter 7 bankruptcy, and the way that it is different or similar to other kinds of bankruptcy, like Chapter 13, for instance. The biggest defining characteristic about Chapter 7 and 13 is that they are the two most common types of bankruptcy filings for individuals. When you choose to file bankruptcy, you are simply declaring that you are no longer able to make the minimum payments on all your debt.

Contrary to what some people might believe, it isn't hard for the average person to qualify for Chapter 7 bankruptcy. By filing for Chapter 7 bankruptcy, you may be able to eliminate up to 100 percent of your unsecured debt. The fact is that even if you have high income, you still may qualify for the complete debt relief that Chapter 7 can offer. The first step toward taking advantage of this relief is to call a local attorney that is familiar with federal bankruptcy law.


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