Chapter 7 bankruptcy is by far the most common form of bankruptcy in America today, with 728,833 individuals filing this type of bankruptcy throughout 2013 alone. That’s because no other form of bankruptcy allows the complete discharging of one’s applicable debts, and a subsequent second chance at rebuilding one’s financial habits for a more secure future.
Even knowing this, it can be tough to be certain whether you would truly benefit from filing bankruptcy without knowing all the facts and realities behind this form of bankruptcy.
So if you still have more questions about the Chapter 7 bankruptcy timeline, don’t worry — we’ve put together this list of the most frequently-asked questions regarding bankruptcy, along with their answers, for you to use:
What is Chapter 7 bankruptcy?
As stated before, a Chapter 7 filing involves the complete liquidation of an individual’s applicable debts. Student loans, child support payments and alimony aren’t able to be discharged in a bankruptcy, but most other debts are eligible. Through a six-month period, you will work with the bankruptcy court, your attorney and your creditors to create a feasible bankruptcy plan where you give up some of your property and assets in exchange for debt liquidation.
How much does filing bankruptcy cost me?
The current filing fee for this form of bankruptcy is $306. However, this doesn’t include potential attorney fees you will have to pay, which can run upwards of $1,000. If you find yourself unable to pay for the cost of filing bankruptcy, you can apply for a fine exemption and seek out pro bono legal assistance.
How long does it take for your credit to recover after filing bankruptcy?
A Chapter 7 bankruptcy will remain on your credit report for 10 years after you file, which means it’s important to determine whether or not you would truly benefit from filing bankruptcy. While it can be difficult at first to get approved for credit and loans following your bankruptcy, on-time payments and good financial habits can help you bring your credit score back up over time.
Have any other questions about seeking bankruptcy help that aren’t answered in this list? Ask us anything in the comments below and we’ll do our best to get back to you! References.