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Filing Chapter 7 Bankruptcy

Learn How Chapter 7 May Put an End to Credit Card Debt

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Do you constantly find yourself falling further and further behind on your past-due credit card balances despite your best efforts to limit your spending?

Have you fallen in the trap of transferring large balances onto other credit cards, burying you and your family deeper in credit card debt?

Do you avoid picking up the phone for fear of being harassed by angry creditors looking to collect on your late credit cards?

If these scenarios sound all too familiar, take solace in the fact that you're not alone.

Many Americans have increased their borrowing in order to make ends meet during these tough economic times.

The Chapter 7 Process

Filing bankruptcy under Chapter 7 of the U.S. Bankruptcy Code has helped many people discharge credit card debts and get a fresh financial start.

Chapter 7 bankruptcy is a process that takes place in federal bankruptcy courts. Each bankruptcy district has its own courthouse where the case is filed, and many states have several local districts.

After your petition is accepted by the court, assuming you qualify for Chapter 7 under the means test, the court will appoint a bankruptcy trustee to oversee your case.

The Chapter 7 trustee will review your debts, assets, and state exemptions. Any non-exempt property may be auctioned off to repay unsecured property. However, most Chapter 7 filers are fully protected by their state's exemptions and own no property that would be sold at auction.

About six weeks after filing your case, a 341 meeting will be held in the bankruptcy court. This meeting involves the filer testifying under oath that the facts of the bankruptcy case are true. The filer's creditors are also invited to this meeting to ask questions about the debts, but representatives rarely appear in court.

After another six weeks, the court will typically grant a discharge of all unsecured debts included in the filing, freeing the filer from any legal obligation to ever repay them.

Chapter 7 Bankruptcy Addresses Credit Card Debts

Chapter 7 bankruptcy works to help people get an absolute discharge from credit card debt and many other unsecured debts (debts that are not backed by a real item or piece of property).

So how does Chapter 7 bankruptcy accomplish this? When most Chapter 7 bankruptcy cases are filed, an automatic stay takes effect, preventing creditors from taking any action on overdue credit card debts.

The Refreshing Aspect of Chapter 7 Bankruptcy

You may have heard Chapter 7 bankruptcy referred to as "liquidation", because a bankruptcy trustee has the option of liquidating or selling non-exempt assets to make partial payment to creditors.

However, thanks to exemptions, most Chapter 7 petitioners do not have any non-exempt assets, and there is usually no sale of property during Chapter 7 cases. That means many people are able to wipe clean credit card debt without having to sell anything.

Learn More about Filing Chapter 7 Bankruptcy with a Bankruptcy Lawyer

By simply visiting Clear Bankruptcy, you've already taken steps to address your situation and shown that you want to enact a positive and liberating change in your life.

Now keep moving forward by getting in touch with a local bankruptcy lawyer who can explain Chapter 7 bankruptcy in more detail and how it may apply to your current circumstances.

Connect with bankruptcy lawyer today. Simply fill out the free bankruptcy evaluation form below or call toll-free 877-833-2410 to speak with a local bankruptcy lawyer near you.

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