A Chapter 7 bankruptcy provides debtors with a fresh start by eliminating most unsecured debts, allowing individuals to move forward without the burden of overwhelming financial obligations. One of the primary benefits of filing for Chapter 7 bankruptcy is the immediate relief provided through the automatic stay. This legal protection halts all collection activities, including creditor harassment, wage garnishments, repossessions, and foreclosure actions.
Debtors typically complete a Chapter 7 bankruptcy within four to six months, making it one of the quickest forms of debt relief available. Unlike Chapter 13 bankruptcy, Chapter 7 does not require repayment plans, making it an appealing choice for individuals with limited income and significant unsecured debts such as credit cards, medical bills, and personal loans.
It is important to understand, however, that not all debts can be discharged through Chapter 7. Obligations such as student loans, child support, alimony, certain taxes, and debts incurred through fraudulent actions typically remain the debtor’s responsibility. Additionally, secured creditors retain their rights, meaning debtors must continue to make payments on mortgages or auto loans if they wish to retain the associated assets. Finally, bankruptcy does not extinguish liens on property.
If you are considering filing for Chapter 7 bankruptcy or have related questions, our experienced bankruptcy attorneys at Friscia & Associates can guide you through every step of the process, ensuring your rights and interests are fully protected.
If you are interested in filing a Chapter 7 Bankruptcy or if you have any related questions call us today at (212) 960-8308 or (973) 500-8024, or submit your contact information below by clicking here and we can contact you directly.