You have questions about Chapter 7 bankruptcy, and we have answers. Here’s the basics for what to know when you think of Chapter 7 bankruptcy.

1. What is Chapter 7 and how does it work?

Chapter 7 is a part of bankruptcy law that allows a person to file a case in bankruptcy court that permits the person filing, or the debtor, to discharge certain debts. Under Chapter 7, to be discharged of your debts, you must file a case, turn over all nonexempt property, and obey court orders.

2. Who can file under Chapter 7?

Pretty much everybody! If you’ve been granted a discharge under Chapter 7 or Chapter 13 within a certain number of years, commit fraudulent activity, aren’t an individual, or refuse to answer to and obey bankruptcy court, then you are not eligible for Chapter 7 discharge.

3. Can you and your spouse file under Chapter 7 together?

Yes! You use the same set of forms, and you only have to pay one filing fee.

4. Will I be discriminated against for filing for Chapter 7 bankruptcy?

No, it’s illegal for private and governmental employers to discriminate against you because you filed for Chapter 7 bankruptcy. It is also illegal for you to be denied any sort of license, permit, or grant because you have filed for Chapter 7 bankruptcy.

5. Will I be notified if my discharge has been granted?

Yes, typically the courts send a document called Discharge of Debtor to all creditors approximately 4 months after the case is filed. This serves as your notice. If your discharge was not granted, the courts will inform you why.

6. How many times can I file for Chapter 7 bankruptcy?

There is no limit on how many times you can file for Chapter 7 bankruptcy, just a waiting period of 8 years.

7. How long does the Chapter 7 process take and how long will it stay on my record?

The Chapter 7 process typically takes between four and six months from the time you first file to the time you receive a final discharge. There are various things that can affect your personal timeline. Chapter 7 will stay on your credit report for 10 years after it is filed.

If you’re interested in filing for Chapter 7 bankruptcy, contact Craft Law Offices for your free consultation at 252-752-0297 or visit our website at craftlawoffice.com.

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