Chapter 7 bankruptcy is for people of average income and assets who have gotten in over their heads or sustained a loss of income and need to wipe the slate clean. It may also terminate and eliminate many types of lawsuits. In Chapter 7 you can discharge (eliminate) most types of debt and depending upon your situation may emerge from bankruptcy without any debt at all. You are allowed to keep all your assets but there are limits to the value of the assets you may keep. If you own a home and vehicles you will be able to keep them so long as you can afford them and they don’t exceed the value limits protected under the law.
The chapter 7 process is fairly abbreviated and the entire process only takes four to five months from beginning to end. A bankruptcy petition is filed with the court with a complete picture of your financial situation and a Trustee is appointed to review your petition and hold a brief hearing to confirm the accuracy of your petition.
After the hearing before the trustee, creditors have a period of time to object to the discharge of their debts. Objections are rare and usually only occur if there has been some type of malfeasance. You will be granted a discharge after the period for objection expires and you will be able to begin rebuilding your credit almost immediately.
