All active bankruptcies stop any further action by debt collectors once they’ve received proper notice of the filing. Bankruptcies of all kinds allow a person to reorganize their financial debt legally.

Chapter 7 bankruptcy Chapter 7 bankruptcy is one kind of bankruptcy. This type of bankruptcy lets individuals discharge all of their obligations and debts however, there are some limitations by liquidating what they have left of their assets. In all types of bankruptcy, this is the most popular and can be a source of confusion for people who are asking “Am I eligible to file for Chapter 7 bankruptcy?”

Only those who meet the requirements have the right to submit Chapter 7 bankruptcy cases. They must, for instance, have passed a income or means test. If you are approved for a Chapter 7 case is approved the process will take about 3 months, and will end with either dismissal or an approval. If it’s approved, the debts will be discharged and it is not necessary to settle them. It is your responsibility to pay the amount owed if your debt is dissolved. Collectors of debt may restart collection. This procedure can be assisted by a bankruptcy lawyer. jy82oz76fp.