In a Chapter 7 bankruptcy, you file court papers asking that certain unpaid debts be wiped out. Most debts are wiped out after a Chapter 7 bankruptcy, including credit card debt, medical bills, and civil judgments.
Bankruptcy also stops wage garnishment and harassment by collection agencies. Studies show that in 96% of cases, people who file for Chapter 7 get to keep all their property. Most of the cases where property is taken by the court involve real estate or tax refunds.
Filing for bankruptcy is not a good idea for everyone. It is a serious step and you need to understand the costs of filing. It's important to understand that the following debts cannot be canceled in a Chapter 7 bankruptcy:
These debts must still be listed on the bankruptcy papers filed with the court, but they can’t be wiped out.
Upsolve's service and the legal aid clinics we refer you to are free. But there are three things you may need to pay for. They're all required by the bankruptcy court.
If you earn less than a certain amount, you may qualify for a fee waiver and you won't have to pay anything. Take the survey below to see if you may qualify for a fee waiver.