Chapter 7 Bankruptcy
What is Chapter 7 Bankruptcy?
Total personal bankruptcy filings in the United States reached 1.53 million in 2010. This figure means that just more than 5 out of every 1,000 Americans filed in the year. About 7 of every 10 personal bankruptcies filed in 2010 were Chapter 7 bankruptcy filings, under which debts are discharged; the remainder were Chapter 13 bankruptcy filings, in which a court-supervised repayment plan is created.
In 2010, Georgia was number 2 in the nation for bankruptcies. The primary reason for the large number of bankruptcy filings in Georgia was sub-prime mortgages, where people could no longer afford to pay on homes they likely should not have ever bought. This forced many to start filing bankruptcy for relief. Because of this, the economy was hurt, and there have been millions of bankruptcies in the past several years.
The majority of people who file for bankruptcy have lost a job, and almost half have had major health problems. Though job loss is a key reason in many cases, the foremost reason in the Atlanta metro area, as well as the state as a whole, is a serious health problem which leads to significant medical bills.
In a Chapter 7 bankruptcy your debts are wiped out and you get a "Fresh Start." Chapter 7 bankruptcy involves liquidation, which is the process of turning assets into cash. Liquidation is performed under Chapter 7 bankruptcy in which the debtor has made the choice to sell assets to pay off creditors.
Chapter 7, or straight bankruptcy as it is sometimes called, involves the elimination, or discharge, of most debts. It is typically most effective in discharging unsecured debt such as credit card debt, medical bills, or deficiency balances due to automobile repossession.
In the Chapter 7 bankruptcy process, a bankruptcy trustee converts your non-exempt property into cash and distributes it to your creditors. Most filers receive a discharge of all dischargeable debts within just a few months. Chapter 7 bankruptcy is an excellent option for anyone who has few assets but a large amount of debt.
Some examples of non-dischargeable debts under Chapter 7 bankruptcy include student loans, alimony and child support (domestic support obligations), debts for judgments in wrongful death or personal injury lawsuits resulting from motor vehicle, vessel, or aircraft accidents while you were intoxicated, or recently filed taxes.
Total personal bankruptcy filings in the United States reached 1.53 million in 2010. This figure means that just more than 5 out of every 1,000 Americans filed in the year. About 7 of every 10 personal bankruptcies filed in 2010 were Chapter 7 bankruptcy filings, under which debts are discharged; the remainder were Chapter 13 bankruptcy filings, in which a court-supervised repayment plan is created.
In 2010, Georgia was number 2 in the nation for bankruptcies. The primary reason for the large number of bankruptcy filings in Georgia was sub-prime mortgages, where people could no longer afford to pay on homes they likely should not have ever bought. This forced many to start filing bankruptcy for relief. Because of this, the economy was hurt, and there have been millions of bankruptcies in the past several years.
The majority of people who file for bankruptcy have lost a job, and almost half have had major health problems. Though job loss is a key reason in many cases, the foremost reason in the Atlanta metro area, as well as the state as a whole, is a serious health problem which leads to significant medical bills.
In a Chapter 7 bankruptcy your debts are wiped out and you get a "Fresh Start." Chapter 7 bankruptcy involves liquidation, which is the process of turning assets into cash. Liquidation is performed under Chapter 7 bankruptcy in which the debtor has made the choice to sell assets to pay off creditors.
Chapter 7, or straight bankruptcy as it is sometimes called, involves the elimination, or discharge, of most debts. It is typically most effective in discharging unsecured debt such as credit card debt, medical bills, or deficiency balances due to automobile repossession.
In the Chapter 7 bankruptcy process, a bankruptcy trustee converts your non-exempt property into cash and distributes it to your creditors. Most filers receive a discharge of all dischargeable debts within just a few months. Chapter 7 bankruptcy is an excellent option for anyone who has few assets but a large amount of debt.
Some examples of non-dischargeable debts under Chapter 7 bankruptcy include student loans, alimony and child support (domestic support obligations), debts for judgments in wrongful death or personal injury lawsuits resulting from motor vehicle, vessel, or aircraft accidents while you were intoxicated, or recently filed taxes.
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