There comes a time in many people’s lives that their debt becomes too much to handle. When this happens, some seek help from a financial adviser to figure out how to get out of debt, while others file for bankruptcy. If you are struggling financially and are considering bankruptcy, you should know more about Chapter 7 bankruptcy first.
What Does Discharge Mean?
When you file for Chapter 7, your debts become discharged. This means that all of your debts are released, and all collections against you stopped. This does not always mean that creditors will not get any money. They may get some through the trustee selling your non-exempt assets. If you do not have any assets, creditors will not receive any money for your debt and will have no basis for collecting on your past debts.
How Fast will my Debts be Discharged?
In most cases, you can expect your debt to be discharged within 60 to 90 days after you file for bankruptcy. If any of your creditors objects to the discharge, it can make the process take longer.
Why could my Discharge be Rejected?
Not all discharges are approved. There are circumstances in which your discharge could be rejected. A few of the most common reasons for a rejected discharge include failure to keep adequate records, no explanation for the loss of your assets, or if you committed perjury.
What Debts cannot be discharged?
Most of your debt can be discharged through Chapter 7. However, there are some debts that cannot be discharged. These debts include back alimony or child support, certain taxes, student loans, and debt for personal injury or death cases. It is important to know more about Chapter 7 bankruptcy and the debts that cannot be discharged. If the only debt you have is debt that cannot be discharged, Chapter 7 will not help your situation.
Do I have Options Other Than Chapter 7?
Chapter 7 bankruptcy is not always the best option. For some people, Chapter 13 is the best option. Chapter 13 does not discharge your debt. However, it gives you more time to pay off your debt.
Filing for bankruptcy is a huge step. Before you make such a big decision, it is important to know more about Chapter 7 bankruptcy. When you know everything there is to know about the process, you can make a better informed decision.
