A Chapter 7 bankruptcy filing generally provides the quickest fresh start for a person by discharging most unsecured debts (i.e., credit card charges more than 60-days old that were incurred with good faith intent to pay; medical bills, some taxes, unsecured guarantees and notes; most judgments and garnishments; repossession debts; eviction or broken lease debts; past utilities, etc.). A Chapter 7 does not discharge certain taxes such as income taxes for years less than three- years-old and trust fund taxes, alimony, child support, student loans and credit charges within sixty days of filing bankruptcy and some other debts. If you are current with your payments on your car/truck loans and your home mortgage and you want to retain those items, you will need to continue making these monthly payments. Usually, filing a Chapter 7 protects your house, vehicles, home furnishings, wages, retirement plans and life-insurance-cash value from creditors.
