Take Advantage of Filing Chapter 7 Bankruptcy For A Fresh Start

These days it seems that many Americans are struggling in this poor economy and are looking for ways to escape unmanageable debt.
For those in this position a Chapter 7 Bankruptcy, or fresh start bankruptcy as it is often referred to, may be the smartest choice to avoid financial ruin and possibly lose everything.
Bankruptcy was created by Congress to allow honest hard working individuals a way out of insurmountable debt.
Bankruptcy and debt forgiveness is even spoken of in the Bible.
In fact, Chapter 7 Bankruptcy in particular, is the most common chapter of bankruptcy that debtors file.
The term Chapter 7 is actually derived from the chapter of the federal statutes of the bankruptcy code.
A Chapter 7 Bankruptcy will eliminate most if not all of one's debts.
A Chapter 7 in particular wipes out all unsecured debts.
Unsecured debt is any debt that is not secured by an item or property such as credit card debt, medical bills, and payday or personal loans.
If a debtor has secured debt such as a car or home, they can either choose to give back the property and include the deficient amount owed in the bankruptcy filing to have it eliminated, or they can reaffirm the debt.
Reaffirming a debt just means that the debtor agrees keep the property and must continue paying on.
The debtor must be sure that they can afford to keep the property after the bankruptcy because if they cannot, then the creditor will come after them with a judgment, wage garnishment, repossession, or foreclosure.
The debtor will have no recourse as they did not include it in the bankruptcy filing and they cannot re file for bankruptcy for another 8 years.
That being said, filing Chapter 7 Bankruptcy can eliminate most debt, and it is a fairly quick process taking approximately 3 to 6 months from beginning to end.
It all begins with the bankruptcy petition being filed with the court.
This initiates the automatic stay which legally prevents creditors from contacting the debtor.
The automatic stay also puts a stop to legal collection tactics such as foreclosure, wage garnishments, lawsuits, and judgments.
This brings about great peace to many exasperated debtors who have been hounded by aggressive creditors.
The debtor must be sure to complete any court requirements during this period such as the credit counseling course and personal financial management course.
The debtor must also attend the creditors meeting which is a quick meeting with the trustee to make sure the petition is in order.
This meeting takes about 10 minutes as long as everything is complete.
The debtor then just needs to wait for their discharge in the mail.
For anyone that is buried in debt, filing Chapter 7 Bankruptcy just might be the right decision for them giving them that fresh start that a Chapter 7 is associated with.
Whether someone is single or married, with or without children, a Chapter 7 Bankruptcy can give them a handle on their finances by wiping their financial slate clean.