‘Straight bankruptcy’ or ‘debt liquidation’, whatever you may call, it serves the purpose of settling down debts and loans. It takes about four months on an average to get completed. Declaring insolvency is a tough decision to make but it is also acts as a life saving drug in dealing with the daily stress that mounts due to debts. To understand the basics of chapter 7 bankruptcy, you first need to understand the meaning of unsecured debt. It stands for encumbrance that is not guaranteed against any property. It is observed that half of the money owed by debtors is usually secured by any vehicle, shares or home. Arrears that fall in the category of unsecured loans are unpaid bills (credit cards, utility bills, medical dues) taxes and personal loans.
It is a common belief that all the debts can be released with the help of chapter 7 bankruptcy but actually there are several debts cases that cannot be resolved through it. These include spouse and alimony related cases, student loans, legal fines and compensation. The collection process that is being carried by your creditors stops as soon as you file for chapter 7 bankruptcy. If you do not have any non exempted asset then you may keep everything owned by you including jewelry, pension, vehicle (of limited value), furniture etc.
It is a common belief that all the debts can be released with the help of chapter 7 bankruptcy but actually there are several debts cases that cannot be resolved through it. These include spouse and alimony related cases, student loans, legal fines and compensation. The collection process that is being carried by your creditors stops as soon as you file for chapter 7 bankruptcy. If you do not have any non exempted asset then you may keep everything owned by you including jewelry, pension, vehicle (of limited value), furniture etc.
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