Chapter 7 bankruptcy is the fastest and most common form of consumer bankruptcy. It’s a tool to resolve overwhelming debt under the protection of a federal court. You may have to give up some assets, like an expensive car or jewelry, but the vast majority of filers do not.
This type of bankruptcy forgives most unsecured debts, that is, debts without collateral, like medical bills, credit card debt and personal loans. However, some forms of debt, such as back taxes, court judgments, alimony and child support, and student loans generally aren’t eligible. Chapter 7 bankruptcy will leave a serious mark on your credit reports for 10 years. During this time, you’ll likely find it harder to get credit. Even so, you’ll probably see your credit scores start to recover in the months after you file.
Times like these can be tough if you are forced to consider filing for bankruptcy. We know how important family and relationships are, that is why we never treat you like a number or a “case” but as an individual. Everyone’s circumstances are different. At Whitten and Whitten we take the time to find out who you are and what you need.