A Chapter 7 Bankruptcy is a bankruptcy where you don’t make payments back to your creditors. Your debts get wiped out, tax free, for eternity. Now, let’s be clear with one another. If you want to keep collateral secured to a loan, you must make payments on the loan or the creditor will have the right to come and get their collateral. For example, if you have a house and a car and loans tied to both, and you want to keep both your house and car, you must keep making payments on the loan (even though once discharged you are not liable on the loan) if you want to keep these assets.
When you file a Chapter 7 Bankruptcy the focus is in on your assets primarily. You are required to disclose all your assets and debts and answer many questions about your financial affairs. In exchange for candid disclosures about your financial picture, you get significant relief from debt. Your liability on credit card debt, medical bills, unsecured loans, trade payables and many other unsecured debts goes away forever! There are millions of Americans who are walking around now who have already gone through the process and have their lives back. They would tell you it is not as scary as you think!
When the time is right, or when you are ready to get your life back, reach out to Minnesota’s HIGHEST GOOGLE reviewed bankruptcy law firm at www.kainscott.com. You will be so glad you did!