what is chapter 7 bankruptcy and is it a good idea to file it

this8384

The only time you should ever consider filing bankruptcy is when you absolutely cannot pay any of your bills off. That being said, you need to realize that filing for bankruptcy is going to completely destroy your credit. If you only have 1 lawsuit against you, then I really wouldn't consider bankruptcy to even be an option.

JudyKayTee

"A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property."