As per Aurora bankruptcy attorney David Siegel, Chapter 7 bankruptcy is bankruptcy that allows a person to eliminate their secured and unsecured debt; completely eliminate the debt meaning that the debtor is no longer personally liable for the amounts of money that they owe to a creditor. Chapter 7 is bankruptcy that really helps a lot of people who have a lot of unsecured debt such as credit cards, medical bills, pay day loans, utility bills; any kind of unsecured debt is debt that is completely eliminated by a Chapter 7 bankruptcy should the debtor qualify. Not only does a completely eliminate your unsecured debt but in many circumstances, will completely eliminate secured debts. Secured debt is that such as a loan to be paid back for a car or a mortgage to be paid for the house or real estate.
Chapter 7 bankruptcy is also a liquidation analysis of the debtor’s assets. This is very important because if a debtor has assets that can be sold, the debtor’s assets will be sold in order to satisfy the amount of debt they owe to creditors. So in evaluating whether or not the Chapter 7 bankruptcy is good for a person, one must see whether a person qualifies for a Chapter 7 and then one must see if that person has any assets that are unable to be exempt. So it’s very important to find out whether or not a person has a lot of assets. In the case of a person who has a lot of assets, that person should think about doing a Chapter 13 bankruptcy if they can afford to do one.
Chapter 7 bankruptcy also does not eliminate all debt. Some debts that are not eliminated our student loans, certain income taxes, certain invisible traffic violations such as parking tickets or traffic tickets and also any kind of domestic support obligation meaning child support or maintenance or spousal support arrears that of not been paid. These are the things that Chapter 7 bankruptcy will not eliminate.
Chapter 7 is a great way to relieve the stress of your financial situation and completely eliminate certain debts that will allow you to have a fresh start.