Chapter 7 Bankruptcy Fast Facts
Interested in learning more about how Chapter 7 bankruptcy can help you get out of debt? Let us help with that by giving you some Chapter 7 bankruptcy fast facts that should point you in the right direction:
1. Chapter 7 bankruptcy is the most common type of personal bankruptcy filed today.
Thousands of individuals and married couples use Chapter 7 bankruptcy protection every month. It is one of two types of personal bankruptcy and is more common because it caters to individuals with low incomes, high debt levels, and little to no assets.
2. Chapter 7 bankruptcy is the quickest form of personal bankruptcy.
Filing Chapter 7 bankruptcy can be done in as quick as 30 days if the debtor is in dire need, but typically the entire Chapter 7 process takes between 4-6 months. After you hire a bankruptcy lawyer they will gather financial information from you, create the official court documents, and file the bankruptcy paperwork (petition) with the court. Soon after your paperwork is filed you will attend a short hearing and 30-45 days following your hearing you will receive paperwork stating that your bankruptcy has been completed.
3. Chapter 7 bankruptcy is typically the cheapest form of personal bankruptcy.
The cost of filing a Chapter 7 bankruptcy will depend on several different variables such as the state you live in and the amount of debt you are filing on. In most cases the bankruptcy attorney you choose will estimate how much work will need to be done on your case before quoting you a fee that will need to be paid before your case is filed. In most cases a Chapter 7 bankruptcy filing will range between $1000-$2000 dollars.
4. Chapter 7 bankruptcy can erase most types of unsecured debt.
One of the reasons that Chapter 7 bankruptcy is so common in America is due to the types of debt that it erases. Credit card debt, medical bills, payday loans and personal loans are all types of debt that can typically be wiped away by filing a Chapter 7 bankruptcy. These types of debt all fall into the category of “unsecured” debt which is debt that is not tied to a particular loan or object like a home or vehicle.
5. Chapter 7 bankruptcy can be filed every 8 years.
In 2005, new bankruptcy laws named the Bankruptcy Abuse Prevention and Consumer Protection Act stated that an individual must wait 8 years between filing separate Chapter 7 bankruptcy cases. This was one year longer than the waiting period was before 2005. The 2005 laws were put in place in order to avoid abuse of the bankruptcy system.
These 5 facts are just the tip of the iceberg when it comes to filing Chapter 7 bankruptcy, but they are still valuable pieces of information for anyone looking into how it would help their financial situation. Filing Chapter 7 bankruptcy is a right that Americans are given to help them overcome debt that is too overwhelming for them to come out of alone.