Chapter 7 bankruptcy, which is sometimes called a liquidation bankruptcy, may be a solution for you. It allows to you have a fresh start by discharging (“getting rid of”) certain debts including but not limited to credit card debts, medical bills, judgments and old utility bills. Debt that you can’t write off through bankruptcy includes debts to the government, such as back taxes, child support that’s due, and student loan debt. When you have debt that can’t be written off, you may be able to develop a payment plan with each of these creditors that makes paying back the debt a little easier.
The filing of a Chapter 7 bankruptcy stops all collection activity against you. The Chapter 7 process is usually complete within 3-5 months after the case is filed. Chapter 7 bankruptcy allows you to have a fresh financial start without debt controlling your life.