Chapter 7 Bankruptcy

Full Video Transcript

Chapter 7 bankruptcy offers certain advantages for those in financial distress. Otherwise known as “liquidation,” Chapter 7 bankruptcy allows you to wipe out most of your debt and start over. You will have the opportunity to create a new financial plan and hopefully begin to establish a better credit rating. Perhaps best of all, filing for bankruptcy under Chapter 7 can help prevent creditors from harassing you by phone and mail. Filing for Chapter 7 will affect your credit rating for up to 10 years, and some debt may not be cleared. These may include student loans, court fines, taxes, and some others. For more information, consult an experienced bankruptcy attorney in your area.