Summary: Chapter 7 Bankruptcy

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A petition filed for Chapter 7 bankruptcy will require the debtor to liquidate most of their assets to pay off their creditors. There are three goals for the debtor when filing a Chapter 7 petition, those first one being to claim their assets as “exempt” from creditors, secondly to obtain a discharged of responsibility for the debt listed in the petition and the third being the automatic stay which halts the creditors from attempting to collect or garnish wages once the petition is filed.

If the debtor decides that filing a Chapter 7 bankruptcy petition is their best course of action to get a renewed start of finances, the debtor must first consult with an attorney. At the consolation, the attorney will perform the means testing which formulas
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