Chapter 7 bankruptcy is a legal process that can help certain individuals get a “fresh start” by eliminating some or all of their debt.
Under Chapter 7 bankruptcy, a court-appointed Trustee may sell or liquidate some of your assets or property in order to pay your creditors. The result of Chapter 7 bankruptcy is often a discharge of your debt, meaning you’re no longer legally liable.
Both Chapter 7 and Chapter 13 bankruptcy have serious negative ramifications for your credit reports and scores, and they involve court fees and potentially legal fees. An NFCC-certified credit counselor can help you understand the pros and cons of bankruptcy and other debt management options, and provide you with your court-ordered bankruptcy counseling.