Trapped in Credit Card Hell?
A Chapter 7 Bankruptcy cancels all “dischargeable” debt.
Chapter 7 Bankruptcy discharges: Credit Card Debt, Medical Debt, Personal Loan Debt, Judgments-Unless fraudulent or criminal in nature, Deficiency Debts (Repossessed vehicles and foreclosed property), Personal injury debt-Except where injury was the result of driving while intoxicated, Certain Exceptions may apply.
Generally, a person may keep their home or vehicle, provided the payments are current and the person has the ability to continue to make the future payments.
A Chapter 7 Bankruptcy discharge does not eliminate student loans, except where undue hardship can be proven. A Bankruptcy discharge does not eliminate other debts including: certain taxes; alimony and/or support payments; fines, penalties, and criminal restitution; debts incurred by intentional injury to a person or property; or debts from personal injury caused while driving under the influence.
Chapter 7 is a liquidating Chapter under the Bankruptcy Code with debtors generally receiving their discharge in approximately 4 months. In Chapter 7 cases, a trustee is appointed to examine the debtor and inquire about their assets to see if there are any non-exempt equity in assets that can be liquidated to pay creditors. Chapter 7 is the most common type of bankruptcy filed. Approximately 95% of all Chapter 7 cases filed end up as “no asset” cases. This means there are no assets other than exempt assets. Exemptions are determined on a state-by-state basis.