Chapter 7 Bankruptcy
A Chapter 7 bankruptcy allows individuals to discharge most or all of their unsecured debt in order to get their financial situation under control. Unsecured debt includes credit cards, personal loans, lawsuits, medical bills, utility bills and even some types of unpaid taxes. For the most part, those who are current with their mortgage payments and vehicle payments find a Chapter 7 bankruptcy may be a helpful solution to financial problems.
Filing for Chapter 7 bankruptcy has other advantages other than eliminating your legal liability to repay your unsecured debt. Upon filing of the bankruptcy petition, creditors and collection agencies will be prohibited from contacting and harassing you for your debt.
Also, all legal action must cease. For this reason, Chapter 7 bankruptcy is extremely advantageous, as creditor harassment is one of the worst effects of having unpaid debt. Furthermore, Chapter 7 can also stop execution sales, frozen bank accounts and eliminate liens on your property.