Chapter 7 puts an end to harassing phone calls
, legal action and wage garnishment by creditors. It eliminates different types of unsecured debts, such as medical bills, credit cards, store cards, utility bills, and more—basically, most debt not tied to property. It may even buy you time to negotiate a new payment plan with your mortgage lender or auto loan company. This could help you keep your home or car while obtaining relief from other debts. There is a means test debtors take to determine if Chapter 7 bankruptcy is right for you, as well as calling Rick Baum for advice.
Chapter 7 bankruptcy is ideal for those who have a lot of unsecured debt
but not a lot of income. For example, if you have a lot of credit card debt, medical debt or payday loan debt, this may be the best way to help yourself get a fresh financial start. Student loan debt and some tax debt may not be discharged through Chapter 7 bankruptcy. Prior to filing, you will be asked to take a means test, but most debtors will pass this test.