Nearly 2/3 of all personal bankruptcy filings are Chapter 7. This makes it the most common type of bankruptcy. What I will do is define for you exactly what Chapter 7 bankruptcy is and answer 3 of the most common questions asked about it.

Chapter 7, or straight bankruptcy, is a good fit- if you are in a position to sell your nonexempt property and use the money made to pay your creditors. Of course, you want to make sure that you will have property left over after paying your debts to get a fresh start.

Here are a couple of common questions about Chapter 7 bankruptcy

1. Will I be harassed by people I owe money to after I file for bankruptcy? The answer is no. In fact, by law your creditors must cease all actions against you once you file. Filing for bankruptcy is a way to settle with your creditors and start over.

2. Is everyone going to know I filed? Chapter 7 bankruptcy filings are public records. However, typically no one will know you went bankrupt unless you choose to tell them. There aren’t many publications that are printing the names of all people filing, and there are a lot of them.

3. I feel ashamed I’m filing for bankruptcy. Why do most people file? Filing for bankruptcy is nothing to feel ashamed about. In fact the most common reasons for filing include medical expenses, divorce, job loss and other unexpected and unplanned events.

If you think Chapter 7 bankruptcy might be a fit for you the next step is to consult with a bankruptcy attorney.

Related posts:

1. Commonly Asked Questions About Bankruptcy In Michigan
2. Considering Bankruptcy: The Chapter 7 Option
3. Southfield, Michigan, Chapter 7 Bankruptcy Info