Chapter Seven Bankruptcy
If you have out-of-control credit cards debts, Chapter 7 bankruptcy is a good option for you. Chapter 7 is best for people with unsecured debts. “Unsecured” simply means debt acquired without offering up collateral. Under Chapter 7 laws, all unsecured debts are discharged. You simply need not pay them.
This makes Chapter 7 a favorite option of debtors looking for a quick way out of their minimum monthly payment nightmare. The entire legal process is finished within 120 days of first filing for bankruptcy. Under law, a person can declare Chapter 7 bankruptcy only once every six years. And there is an entire litany of exceptions to the kinds of debts that are not eliminated under Chapter 7. But generally speaking, if you are a law-abiding citizen who has run up a large credit balance, Chapter 7 is the bankruptcy option for you. It should be mentioned that the Bush administration may change the law in the near future, disqualifying most Americans from Chapter 7 assistance. So I would suggest you look into this option soon if you have ballooning credit card bills.
If you have large secured debts, you will need to look more closely at Chapter 7. State laws about excemptions for secured debts vary, so if you are lucky enough to live in the right state, this shortcut process might still work for you. You might ask yourself whether you could still make the payments on your secured debts if you had a means to wipe out your credit card balances. If so, Chapter 7 bankruptcy is a viable option. Avoiding the extra hassles and commitments of Chapter 13 bankruptcy might be worth it to you.
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