What is a Chapter 7 Bankruptcy?
A Chapter 7 Bankruptcy is a complete "discharge" of all or most unsecured debts. This includes medical bills, credit card bills, and signature loans. Your secured loans, like car payments
and home mortgages, must be paid and kept current if you want to keep that property.
What is a "discharge"?
A discharge is a Court Order releasing you from all dischargeable debts and ordering your creditors not to attempt to collect them from you. A debt that is discharged in your bankruptcy is completely wiped out, and you do not have to pay it. You will see below that there are some debts that are not released by a Chapter 7 discharge.
Which debts are not released by a Chapter 7 discharge?
The debts listed below are exceptions to a Chapter 7 discharge.
Domestic support obligations
Can I go ahead and use my credit cards?
No. Do not incur any more debt.That would be fraud. Also, it is a good idea not to dispose of, sell, trade in or give anything away without checking with your attorney first.
Do I have to attend Credit Counseling before I file?
Yes. The Bankruptcy Code requires that all individual debtors who file for bankruptcy relief receive a briefing that outlines the available opportunities for credit counseling and provides assistance in performing a budget analysis.
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