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Chapter 7 Bankruptcy

To file Chapter 7 bankruptcy is where you wash your hands of all debt, and do not pay any of it back. This is different from Chapter 13 bankruptcy, where you make payments. In a Chapter 7 bankruptcy, you wipe away the debt.

One major concern of many people is whether they have to give back any of their possessions if they file bankruptcy. The answer is that it depends on how much "stuff" you have, but if you're like many people who don't own much, have no investment/rental real estate or other major things, chances are that the harassing creditors won't be able to get their hands on your homestead, stereo, your CD collection or, since you're viewing this on the web, your computer. Bottom line: a good bankruptcy lawyer can protect your stuff so you give back nothing.

Will I Ever Get Credit Again?

The bankruptcy will appear on your credit report for up to ten years after you file. Other accurate negative reports on your credit must be removed after seven years However, according to former clients, this is usually not as big a problem as most people think. Credit lending agencies know you won't be able to file another bankruptcy for at least 6 years, and therefore, they don't have that risk to bear. You will not get as high a credit limit as you once had, or be able to borrow a large sum of money, but getting some credit (such as a secured credit card) shouldn't be that difficult and you can rebuild your credit over time.

What you will likely face is higher interest rates, required higher down payments, more points, etc. Some people do have difficulty rebuilding their credit, but it is usually due to other factors besides bankruptcy, such as their employment record, other credit problems, etc. In any event, we can provide you with excellent materials for helping you rebuild your credit should you so desire.