Bankruptcy is a common occurrence in the United States as thousands of individuals and businesses each year find themselves in an impossible financial situation that they just cannot get out of without some sort of legal help. In general, bankruptcy can be defined as the legal inability to pay debts or the state of having been legally declared bankrupt. There are several different types of bankruptcy including chapter 7, chapter 9, chapter 11, chapter 12, chapter 13, and chapter 15.

Chapter 7 bankruptcy is the most common type of bankruptcy in America . It has many different names such as “straight” or “liquidation” bankruptcy, but in the end they all mean the same thing. Chapter 7 bankruptcy refers to a section of the United States Federal Bankruptcy Code that contains the bankruptcy law that allows individuals, couples, and businesses to cancel (discharge) their debts. However, the bankruptcy court may have to liquidate some of the debtors’ property for the benefit of the creditors.

Obtaining chapter 7 bankruptcy protection can be a grueling process and because chapter 7 bankruptcy laws can be complicated, you should consult a bankruptcy lawyer to help you with your case. Experienced chapter 7 bankruptcy lawyers will know the ins and outs of the legal system, and they will be able to discuss the chapter 7 bankruptcy and other possible alternatives or options if necessary.

Once a bankruptcy lawyer has explained your options, they will oversee your case including filing, administrative tasks, etc. In general, the chapter 7 bankruptcy process takes approximately four to six months and may require a trip (or two) to the courthouse to go before a judge. If this seems too good to be true, you are correct – it is. If you file for chapter 7, your debts will be discharged, but your credit will be ruined – possibly, for up to 10 years. A chapter 7 bankruptcy lawyer will explain the risks to you and your financial future, as well as offer other possible alternatives to bankruptcy. Keep in mind that a bankruptcy lawyer will also (or should) have extensive knowledge about debt management.

If you are ready to contact a bankruptcy lawyer to explore your options for debt relief, visit the American Bar Association ( ABA ) website. The ABA features a lawyer locator which allows the user to search bankruptcy lawyer profiles in your local area. Access to the site and profiles is free.

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