Chapter 7 Bankruptcy
There are lots of reason people file for Chapter 7 bankruptcy. Some common reason for filing for bankruptcy are unemployment, large medical expenses, seriously overextended credit, and marital problems. Chapter 7 is sometimes referred to as a "straight bankruptcy." a Chapter 7 bankruptcy liquidates you assets to pay off as much of you debt as possible. The cash from your assets is distributed to creditors like banks and credit card companies.
Within four months, you will receive a notice of discharge. The record of your bankruptcy will stay on your credit report for ten years. But even that doesn't have to mean doom. Lots of chapter 7 filers have bought homes with recent bankruptcies on their record. For many people like I said before, Chapter 7 offers a quick, fresh start.
But Chapter 7 bankruptcies aren't right for everyone.Almost all assets are taken and sold to repay creditors. If a debtor owns a company, a family home, or any other personal assets which he or she wants to keep, Chapter 7 may not be the best option.