CHAPTER 7
Seek Freedom from Credit Card Debt
Credit card debt is one of the most troubling financial issues for American families today. Harvard law professor Elizabeth Warren recently noted in her essay “The Battered Athlete” on TPM Café.com how: 23 million Americans currently can’t make more than the minimum payment on their credit cards; nearly half of all credit card holders missed at least one payment in 2007; and nearly 25 percent of families are worried about how they will pay for their credit card bills at the end of the month (view more debt statistics ).
If you find yourself in similar situations to the ones described above, remember that you’re not alone and that you have more power than you think.
* medical bills;
* most personal loans;
* payday loans;
* wage garnishments;
* judgments resulting from car accidents;
* deficiencies on repossessed vehicles; and
* some older tax debts.
Non-dischargeable debts in Chapter 7 bankruptcy cases typically include child support, student loans and many tax debts.
Chapter 7 Bankruptcy Is Also Called Liquidation – What Does This Mean?
A term which some may find misleading, when in reality, it’s extremely rare that a consumer loses any personal belongings.
The Liberating Power of Chapter 7 Bankruptcy
Chapter 7 bankruptcy works to help most people with credit card and other unsecured debts wipe their financial slate clean through a discharge of those debts. The beauty of Chapter 7 bankruptcy is that this financial freedom from credit card debts is immediate and absolute.
Upon filing Chapter 7 bankruptcy, an automatic stay takes effect. The automatic stay is a court order prohibiting any further action to collect, including creditor calls, foreclosure, repossessions, utility shut-offs, wage garnishments, and license suspensions due to uninsured accidents.
Visualize Other Debts Being Wiped Clean in Chapter 7 Bankruptcy In addition to credit card bills, Chapter 7 bankruptcy typically discharges other unsecured debts, which refer to debts that are not tied to any item or property.
In your situation, Chapter 7 bankruptcy may be able to wipe clean credit card and other unsecured debts like:
During a Chapter 7 bankruptcy case, a bankruptcy trustee has the option of liquidating or selling your non-exempt assets in order to pay off some of your outstanding bills.
The good news is that most people who file Chapter 7 bankruptcy do not have any non-exempt assets, and there is usually no liquidation or sale of property.
Now get in touch with a local bankruptcy attorney who can help you learn whether Chapter 7 bankruptcy may offer you and your family the new financial beginning it so deserves.
by Clear Bankruptcy.
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