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June 26, 2012 - PRLog -- Wipe Out Debts through Chapter 7 Bankruptcy
What is a Chapter 7?

Chapter 7 bankruptcy, also called liquidation, is the most common type of bankruptcy and completely eliminates your dischargeable debt forever. Individuals or businesses who are granted Chapter 7 bankruptcy discharge have proven to the Bankruptcy Court that they have no realistic way to repay their debt over the course of the next three to five years.

When Chapter 7  bankruptcy relief is awarded, the debtor is legally excused from having to repay any unsecured debts, and most debtors are able to keep all properties. Typically it takes about four months after the case is filed in the Bankruptc y Court, for a Chapter 7 bankruptcy case to be discharged.

Certain types of debts cannot be eliminated through Chapter 7 bankruptcy including student loans, child support, alimony,  and most taxes.

If you had a prior bankruptcy pending within the past year

The automatic stay is the provision of the bankruptcy code which stops or prevents creditors collection actions (including repossession, garnishment, foreclosure, etc.).  However, if you filed one previous case which was pending within the past year, the stay will end on the 30th day after the filing of the present case.

The stay will not go into effect at all if you filed two or more previous bankruptcy cases which were pending within the past year. For the automatic stay to take effect longer where there was a single previous case, or at all where there was more than one previous case, you must file a motion with the court and demonstrate "that the filing of the later case is in good faith as to the creditors to be stayed."

 Prior cases which were dismissed under  11 USC §707(b)for abuse of the code and failure to meet the means test are excluded in determining how long or whether the stay will take effect.  [11 USC §362(c)(3)and 11 USC §362(c)(4)]

Within six months prior to filing a bankruptcy individuals must complete and obtain a certificate of credit counseling.
Amended Interim Rule 1007, made effective October 1, 2006, amends the filing requirement of Rule1007(b)(3) and allows the certificate of completion to be filed within 15 days after filing a petition.


You Previously Received a Bankruptcy Discharge

You cannot file for Chapter 7 bankruptcy if you obtained a discharge of your debts in a Chapter 7 bankruptcy case within the last eight years, or a Chapter 13 case within the last six years.