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What should you expect from the Chapter 7 bankruptcy process?

Owing a significant amount of debt can be both frustrating and overwhelming for a Georgia adult. It could leave you facing intimidating calls from debt collectors, wage garnishment, threats of foreclosure and more. If you find yourself in this situation, you may be looking for a way out, and bankruptcy could offer that to you. Depending on the type of debt you have, Chapter 7 bankruptcy could be the most beneficial choice.

Chapter 7 is the most popular type of bankruptcy because the entire process is complete within a few months. While it is liquidation bankruptcy, it will likely allow one to keep his or her home and other important personal possessions. If you are carrying the burden of owing more debt than you could hope to repay on your own, Chapter 7 bankruptcy could offer you the opportunity for a better future.

What is going to happen?

Liquidation is a critical aspect of the Chapter 7 bankruptcy process. This does not, however, mean you will lose everything you have. There will be a liquidation of non-exempt assets, and proceeds will go toward your remaining debt. After this, there will be a discharge of eligible remaining balances. While the bankruptcy process is ongoing, you will benefit from the automatic stay. This protects you from collection efforts and continued contact from creditors. It will remain in effect until the bankruptcy process is complete.

Not everyone is eligible for Chapter 7. This is ideal for individuals who owe a significant amount of unsecured debt, such as medical bills or credit card debt. There will be a full disclosure of all of your property, debt and income in order to determine your eligibility. If Chapter 7 is not an option, you could consider filing for Chapter 13 bankruptcy.

The best choice for your future

Bankruptcy is a significant legal and financial decision that will impact you for years to come. This is not one you should take lightly, but instead, you will benefit from a complete understanding of all of the options available to you. This can help you make decisions that will be practical and beneficial for your future, allowing you to reclaim your financial security once the process is complete. Chapter 7 could offer you a way to deal with some of your balances once and for all.