Q: What Is Chapter 7 Bankruptcy?

A: Chapter 7 bankruptcy is a legal liquidation procedure. The person or business in debt turns over to the court-appointed bankruptcy trustee all non-exempt property. This property is then liquidated/sold, and the proceeds distributed to the creditors.

Q: How Will My Spouse Be Affected?

A: Unless your spouse is responsible for your debt, he or she will not be affected by your filing for bankruptcy.

Q: Will Filing Bankruptcy Be Public Record?

A: Yes, bankruptcy filings by law are public record.

Q: How Long Will Bankruptcy Stay On My Credit Report?

A: Bankruptcy unfortunately will remain on the filer's credit report for 10 years. This is one of the extremely negative consequences of choosing to file for bankruptcy rather than pursuing other debt relief solutions.

Learn More About Debt Relief Without Bankruptcy.

Q: What Possessions May I Not Keep With A Bankruptcy Filing?

A: Assets which are considered non-dischargeable such as automobiles, boats, home and real estate shall be liquidated by the court-appointed bankruptcy trustee.

Q: What debts are non-exempt from bankruptcy and must be repaid?

A: Income tax, student loans, child support and alimony are all debts which obtain no relief through a bankruptcy filing.

Q: Can I File Bankruptcy For Free?

A: No. There are mandated court costs for filing for bankruptcy.

Q: How Does Bankruptcy Affect My Credit Score?

A: FICO has recently reported that filing for bankruptcy will cause a person's credit score to drop by nearly 300 points immediately. In essence, filing for bankruptcy devastates a credit score.