Chapter 7 is the “fresh start” type of bankruptcy.  You can simply walk away from your debt and never have to pay it back – including credit card bills, repossession deficiencies, medical bills, a home mortgage you cannot afford, and even some tax debt.  When you file Chapter 7, all creditor action stops, so you can decide what to do next.

Many people use Chapter 7 to walk away from a home that they can no longer afford, or that is worth less than what is owed.   If you file Chapter 7 and surrender your home, you will need to find a new place to live, but you will likely have 4 to 8 weeks to prepare to move and to find a new place to live. Chapter 7, therefore, will not solve your current mortgage delinquency but it will give you breathing room and a chance to move on your terms.

Similarly, you can use Chapter 7 to surrender and wipe out debt associated with a vehicle you can no longer afford.   This applies to both vehicle purchases and vehicle leases.  Because Chapter 7 is a type of bankruptcy, the car lender cannot sue you or file a claim for any deficiency balance.

Chapter 7 also wipes out unsecured debt like credit card bills and medical debt.  Once discharged in Chapter 7, you never have to pay this debt back – you truly get a “fresh start.”

As you can see, Chapter 7 offers qualified debts very powerful debt relief.  Chapter 7 protection is not right for everybody but it may be the right option for you.  Call Clark & Washington today for a free consultation about Chapter 7 and how it might benefit you.