According to the amendments to the Bankruptcy Code enacted in to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, if a debtor’s income is in excess of certain thresholds, the debtor may not be eligible for chapter 7 relief. Filing a petition under chapter 7, automatically stays most collection actions against the debtor or the debtor’s property, but potential debtors should realize that the filing of a petition under chapter 7 might result in the loss of property.

After Chapter 7 bankruptcy, one will not longer owe money on credit cards, unsecured loans, unpaid hospital, medical and utility bills and unpaid rent. But debts like state and federal taxes (unless they are more than three years old), child support required by law; alimony, government-backed student loans, debts due to fraud, fines, penalties and debts due to willful injury to another person or property are not eliminated by Chapter 7 bankruptcy.

 Chapter 7 bankruptcy, also referred to as ‘liquidation bankruptcy’ is a way to eliminate your current debt and get creditors off of your back. If you are behind on your current bills and have debt collectors continuously harassing you, then you may want to contact a lawyer specializing in bankruptcy. Chapter 7 will give you a fresh start, free from all of your debt. It is important that once you have filed bankruptcy, you must change your lifestyle to ensure you do not end up with debt you are unable to repay.

When considering bankruptcy, a lawyer who has experience with bankruptcy can help guide you through the entire process. They can help you file all of the needed paperwork with the courts and see your best interests are looked after. With the complexity of bankruptcy law, especially with the major sweeping changes to those laws in recent years, this is not something you would want to attempt by yourself without some experienced guidance. In fact, the majority of people who have used a bankruptcy lawyer state that they saved much more than the attorney’s fees in terms of what they were able to save in the process and what they did not need to liquidate.

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