{"id":3334,"date":"2020-07-08T08:59:45","date_gmt":"2020-07-08T08:59:45","guid":{"rendered":"https:\/\/phoenixfreshstartbankruptcy.com\/?p=3334"},"modified":"2020-07-08T08:59:45","modified_gmt":"2020-07-08T08:59:45","slug":"chapter-7-bankruptcy-what-it-is-and-what-it-isnt","status":"publish","type":"post","link":"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7-bankruptcy-what-it-is-and-what-it-isnt\/","title":{"rendered":"Chapter 7 Bankruptcy: What It Is and What It Isn\u2019t"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">While filing bankruptcy Chapter 7 is often regarded as a fast route to debt relief, some still avoid this option due to the erroneous beliefs about what it does to the filer. To avoid limiting your options when faced with serious financial problems, get yourself acquainted with the following information about what this type of bankruptcy is and what it isn\u2019t.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Chapter_7_Bankruptcy\"><\/span><span style=\"font-weight: 400;\">What is Chapter 7 Bankruptcy?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-663ce0ac5fbe8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-663ce0ac5fbe8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7-bankruptcy-what-it-is-and-what-it-isnt\/#What_is_Chapter_7_Bankruptcy\" title=\"What is Chapter 7 Bankruptcy?\">What is Chapter 7 Bankruptcy?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7-bankruptcy-what-it-is-and-what-it-isnt\/#What_are_the_misconceptions_in_filing_Chapter_7\" title=\"What are the misconceptions in filing Chapter 7?\">What are the misconceptions in filing Chapter 7?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7-bankruptcy-what-it-is-and-what-it-isnt\/#Why_should_I_consider_filing_for_bankruptcy\" title=\"Why should I consider filing for bankruptcy?\">Why should I consider filing for bankruptcy?<\/a><\/li><\/ul><\/nav><\/div>\n\n<ul>\n<li style=\"font-weight: 400;\"><b>It is a liquidation bankruptcy. <\/b><span style=\"font-weight: 400;\">The reason behind such a name is that it discharges almost all of your unsecured debts, which include credit card balances, medical bills, and your personal loans.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>It is the most common type of bankruptcy filed<\/b><span style=\"font-weight: 400;\">. In fact, according to 2019 statistics released by the Administrative Office of the U.S. Courts, there were over 400,000 Chapter 7 filings which accounted for 62% of annual bankruptcy filings.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>It is available to anyone who passes the \u201cmeans test\u2019\u2019.<\/b><span style=\"font-weight: 400;\"> The only requirement to qualify for declaring bankruptcy under this chapter is to pass a test which shall examine your financial records, monthly income, expenses, unsecured and secured debts.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>It will halt your lender\u2019s collection activities.<\/b><span style=\"font-weight: 400;\"> The best thing about <a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7\/\">Chapter 7<\/a> is that it can stop foreclosure and all your creditor\u2019s demands and harassment because of the automatic stay issued by the bankruptcy court.\u00a0<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_misconceptions_in_filing_Chapter_7\"><\/span><span style=\"font-weight: 400;\">What are the misconceptions in filing Chapter 7?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignright size-medium wp-image-3337\" src=\"https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/07\/bankruptcy-chapter-7-300x300.jpg\" alt=\"bankruptcy chapter 7\" width=\"300\" height=\"300\" srcset=\"https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/07\/bankruptcy-chapter-7-66x66.jpg 66w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/07\/bankruptcy-chapter-7-100x100.jpg 100w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/07\/bankruptcy-chapter-7-150x150.jpg 150w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/07\/bankruptcy-chapter-7-200x200.jpg 200w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/07\/bankruptcy-chapter-7-300x300.jpg 300w, https:\/\/phoenixfreshstartbankruptcy.com\/wp-content\/uploads\/2020\/07\/bankruptcy-chapter-7.jpg 338w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Although it is the most preferred among the different types of bankruptcy, filing is often turned down by civilians in fear of the following misconceptions.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>You will lose everything.<\/b><span style=\"font-weight: 400;\"> Although you may lose properties that are not exempt from sale through the bankruptcy trustee, such as luxury possessions, the bankruptcy law has a provision to help keep your basic assets like your home, vehicle, personal computers, and work equipment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Bankruptcy cases will ruin your future. <\/b><span style=\"font-weight: 400;\">This is perhaps the biggest fear of debtors which drive them to not file bankruptcy. It is true that a record of declaring bankruptcy will hurt your credit score in the future and make it more difficult to get loans, but this effect is not permanent. In fact, rebuilding your credit can be done if you commit to maintaining a good record of payments.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>A bankruptcy filing is a sign of failure. <\/b><span style=\"font-weight: 400;\">A debtor may also avoid bankruptcy, or only consider it as a last resort, to save face as it is often misconstrued to reflect character flaw. The truth is that people file for bankruptcy as a remedy to situations often brought about by unforeseen events or sudden illnesses.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>All of your debts will be discharged. <\/b><span style=\"font-weight: 400;\">Some of the eager debtors who filed a bankruptcy mistakenly believe that all their debts will be wiped out. However, bankruptcy does not save you from your personal obligation to pay off the following: income taxes, child support, alimony, or student loans. Bankruptcy exemptions vary from state to state. In this regard, a bankruptcy law firm based in Arizona will be very helpful if you intend to file for bankruptcy.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_should_I_consider_filing_for_bankruptcy\"><\/span><span style=\"font-weight: 400;\">Why should I consider filing for bankruptcy?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If your debt is eating up more than half of your annual income, and you are facing insolvency and have little ability to pay back within the next five years, then bankruptcy (Chapter 7) is your best option to attain a debt-free future.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t allow yourself to be overwhelmed with financial worries as it may interfere with the other aspects of your life, such as your relationships and your ability to have a peaceful rest. After reading what bankruptcy is and what it isn\u2019t, if you believe that your situation is urgent, consider getting legal help from a bankruptcy lawyer to get started with achieving your solution. Experienced bankruptcy lawyers will help you with the paperwork and will work hard to get you through the bankruptcy proceedings.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may start by consulting with <strong>Phoenix Fresh Start Bankruptcy Attorneys<\/strong><\/span><span style=\"font-weight: 400;\">, the affordable <a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/\">bankruptcy attorney in Phoenix, Arizona<\/a>. Call our office today to know more about the Chapter 7 bankruptcy process<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>While filing bankruptcy Chapter 7 is often regarded as a fast route to debt relief, some still avoid this option due to the erroneous beliefs about what it does to the filer. To avoid limiting your options when faced with serious financial problems, get yourself acquainted with the following information about what this type of bankruptcy is and what it isn\u2019t. What is Chapter 7 Bankruptcy? It is a liquidation bankruptcy. The reason behind such a name is that it [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3338,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1439],"tags":[],"_links":{"self":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3334"}],"collection":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/comments?post=3334"}],"version-history":[{"count":0,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media\/3338"}],"wp:attachment":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media?parent=3334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/categories?post=3334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/tags?post=3334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}