Claim Chapter 7 Bankruptcy

If you choose to claim Chapter 7 bankruptcy, you are requesting that the U.S. Bankruptcy Court discharge all eligible debts, meaning that you will no longer be responsible for repaying those debts. During the Chapter 7 bankruptcy process, you will forfeit any non-exempt property to the U.S. Bankruptcy Trustee, who will liquidate the property and apply the proceeds to your unpaid debts, according to their priority. After meeting all other requirements of Chapter 7 bankruptcy proceedings, you will be entitled to a discharge of your debts. You must keep in mind, however, that not all debts are eligible for discharge in bankruptcy proceedings. Examples of non-dischargeable debts are student loans, child support obligations, alimony or spousal support, and certain tax debts.

Fast Facts

    In 2007, credit card balances made up 3.5 of the total debts for American families.
  • 21% of undergraduates had credit card balances of between $3,000 and $7,000 in 2009.

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