Bankruptcy Liquidation

Chapter 7 is another term used for Bankruptcy liquidation which is a legal process that will erase most and often, all of your debt. This takes time, often between four and six months, and can be filed for by businesses and individuals. If you own a particular type of properties, you will be asked to sell them as a way to pay toward you debts. Some property can be taken from you and some cannot but each state has its own laws for this.
To qualify, you can not have filed for a prior Chapter 7 bankruptcy with the last eight years and your income must be at or lower than that required by your state. Credit counseling will be recommended and then the paperwork begins. Once it is filed, you are now safe from lawsuits, eviction, foreclosure and wage garnishments and utilities companies cannot shut off your services.
At the end, not all debt is liquidated. Tax debt for one along with child support or student loans. You will then no longer be in debt to any creditor and for the next ten years, a record of your filing will be on your credit report.