WHAT DOES IT MEAN TO FILE UNDER CHAPTER 7 BANKRUPTCY?

Chapter 7 is typically the most common type of bankruptcy. It’s also a quicker solution than Chapter 13, though not all will be eligible. Through this process, your consumer debts, such as your credit card and medical bills, are eliminated. Creditors must also stop calling you to collect, and any foreclosure processes must halt.

With Chapter 7 bankruptcy, you may be forced to liquidate property and assets in order to pay off your debts. However, many people who file under Chapter 7 are able to maintain most of their property, if not all of their property, through exemptions.

Filing under Chapter 7 will provide you with a clean start and the chance to rebuild your financial stability. However, your credit will be affected, and obtaining credit may become more difficult for you in the early period after your bankruptcy. Rest assured, your credit should improve in the coming months. Our bankruptcy attorney in Fayetteville, NC can help answer any questions about Chapter 7 you may have.