Chapter 7 bankruptcy affords the greatest amount of relief for an individual burdened with unsecured debt.  Unsecured debt is debt that is not tied to property such as a house or car.  Typical unsecured debt includes credit card charges, personal loans, medical bills, utility bills and pay-day loans.  All of these debts are easily eliminated in a Chapter 7 bankruptcy case. 

There are some debts that are not eliminated in a Chapter 7 bankruptcy.  They include, but are not limited to student loans, recent taxes, child support, alimony, maintenance and parking tickets.  Additionally, debts that are incurred by fraud are not eliminated.

A bankruptcy case begins with the filing of a petition with the bankruptcy court.  Most districts now provide for electronic case filing.  Thus, a case can be filed seven days a week, twenty-four hours a day.  This can be quite helpful when trying to file before a foreclose sale date or before a wage garnishment takes effect.  Approximately 45 days after filing, a 341 meeting of creditors’ is held whereby the debtor is examined under oath by a Chapter 7 trustee.  The trustee will questions the debtor to make sure that he or she has no assets available for creditors.  In the overwhelming majority of Chapter 7 bankruptcy cases, there are no proceeds available for creditors and the debtor gets the benefit of a fresh start.

There are several qualifications and pre-filing requirements that must be fulfilled prior to filing.  Please consult with an experienced bankruptcy attorney to determine if you qualify.