Bankruptcy Chapter 7

Chapter 7 is know as a liquidation bankruptcy. Think of it this way: it literally flushes away all debts which are legally dis-chargeable, which means that you no longer owe those debts and no one can pursue collection of those debts from you. It usually is over 4-6 months from the date you file. You can only file bankruptcy once every 8 years. Dis-chargeable debts are usually all unsecured ones like credit cards, medical bills, back rent, repossessed cars and items and mortgage and home equity loans when you are giving the house back to the lenders.