chapter 7 bankruptcy, bankruptcy chapter 7, what is chapter 7 bankruptcy, chapter 7 bankruptcy lawyer, chapter 7 bankruptcy attorneyAbout Chapter 7 Bankruptcy

According to a recent Federal Reserve study, almost half of Americans cannot make a $400 emergency payment. In other words, most families basically live hand-to-mouth and have essentially no financial resources to weather the financial storms of life. These storms include things like a temporary layoff, serious illness, divorce, and a family emergency. Typically, these storms trigger a snowball effect. With little or nothing to fall back on, many families shift scarce resources to secured debts, like home mortgage payments and utility bills, and neglect other kinds of debt, like medical bills and credit cards. Most money lenders have very little patience in this area. Harassing phone calls and other low-level adverse action usually start with the first missed or late payment; lawsuits and other higher-level adverse action follow shortly thereafter. Many times, Chapter 7 bankruptcy is the only way to reverse this downward spiral.

Why File a Chapter 7 Bankruptcy?

As soon as the voluntary petition is filed, an automatic stay goes into effect, in most cases. Typically, that automatic stay remains in effect until the judge signs the discharge order at the end of the case. During this period, moneylenders cannot take any adverse action against you without special permission from the bankruptcy judge. Such action includes:

  • Collection letters
  • Harassing phone calls
  • Repossession
  • Lawsuits
  • Foreclosure

In fact, during Chapter 7 bankruptcy, the Bankruptcy Code prohibits moneylenders from communicating with debtors while their c