Chapter 7 is the most common type of bankruptcy for a person or couple and is often called the "Fresh Start" bankruptcy. It allows a qualifying individual to generally discharge many types of unsecured debt such as credit cards, medical bills, personal loans and payday loans. As soon as you file for a Chapter 7 bankruptcy you are granted an immediate stay for all collection activities. What that means is that, by law, all efforts by creditors and debt collectors to make you pay must stop. Creditors cannot garnish your wages, restrict your bank accounts or repossess your property and they must stop calling you or contacting you in any way regarding the debt.
The Chapter 7 process is designed to move quickly with most cases progressing through the system, from initial filing to discharge of debt, in a matter of months.
Not everyone can qualify for a Chapter 7 bankruptcy and the attorneys at Berg & Chmielewski, PC will work with you to evaluate your qualifications.