Chapter 7 Bankruptcy Filing Gets You Out of Debt Troubles

July 29, 2011 by  Filed under: Bankruptcy 

Bankruptcy is not debtor’s prison, you can survive and you can come out of it better. It can be the light at the end of the tunnel. If you just can’t deal with the financial stress, and your budget just won’t stretch, then don’t let fear, shame, or pride stand in your way.

It’s important to remember that it was created as a way for people to find relief from creditor problems that are overwhelming them. It allows you to start over from scratch without burdensome debt, and with some assets to minimize the risk of your being bankrupt again. Erasing debts through a bankruptcy can be a very humbling experience but when you get through it you will have the weight of the world lifted off of you, giving you the fresh start you desperately need.

Chapter 7 bankruptcy filing allows you to discharge or get rid of all of your unsecured debts and keep most, if not all of your possessions including your car and your home. Unsecured debts are credit cards, store charge cards, gas credit cards, payday loans, personal loans, debts from repossessed property, utility bills, cell phone bills, and medical bills. In some cases, you will be able to get rid of old income tax debts and property tax debts.

In Chapter 7 bankruptcy the majority of your assets are liquidated to satisfy part or all of the debts you owe. There are exemptions to the assets that can be seized, but these exemptions are extremely limited; therefore, Chapter 7 is the preferred type of personal bankruptcy when you own no assets of immense value, such as a home, that you cannot afford to lose. Since it is the closest thing to a fresh start, however, many people choose it as a viable option when their debt load becomes too heavy to carry.

The Court’s enforcement of the education requirements of the new bankruptcy law are starting to affect many unwary and procrastinating debtors. Most debtors are diligent in completing the pre-filing education course. Many of these same debtors, however, are forgetting that they need a post bankruptcy filing course certificate after they file bankruptcy in order to have their debts discharged.

This is all for a reason and it is that your bankruptcy filing will remain on your credit records for 10 years. During this time, banks and lenders will see this filing every time you apply for a personal, student, car or home loan. Some banks will choose not to lend you money. Others will charge you higher interest rates. You might also struggle to obtain new credit cards. In general, having a personal bankruptcy on your record makes borrowing money, and using credit, a hassle. Therefore the above mentioned course could get the debtors guidance for how to deal with the post filing financial issues.

If you looking for certificate bankruptcy course and want to understand all the aspects of chapter 7 bankruptcy filing then visit us at

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