Also known as "Liquidation", a Chapter 7 bankruptcy is relatively straightforward in comparison to its alternatives and can assist both individuals and businesses.
The main objective in a Chapter 7 is to be granted a discharge, which typically take 120 to 180 days. A discharge generally concludes the proceeding - thereby canceling specific types of debts such as medical bills, credit cards, and personal loans.
Additionally, a Chapter 7 debtor may seek to void judgment liens (judicial liens) placed on real property, or halt the attachment of a judgement lien on real property from taking effect.
Although there are advantages for filing a Chapter 7, there may be a few downsides to filing a Chapter 7. For instance, if you own an asset worth more than the elected exemption limit you may be required to relinquish that asset and have the profit used to pay off specific creditors.
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