What happens to my debts when filing for Chapter 7 Bankruptcy?

When filing for Chapter 7 Bankruptcy in Idaho, your debts can be discharged, which means they are eliminated. This usually occurs when all of the assets are liquidated and the proceeds are dispersed to creditors. However, there are some exceptions to this. Some of your debts such as child support, student loans, and other types of taxes, will remain. When filing for Chapter 7 Bankruptcy, an automatic stay is put in place. This means that creditors must stop all collection actions and are not allowed to contact you. This includes phone calls, letters, or any other form of communication. Your creditors will also not be allowed to garnish your wages or repossess any of your property. One of the most important things to consider when filing for Chapter 7 Bankruptcy in Idaho is that there is a possibility that you will lose some of your non-exempt property. Non-exempt property is any item that is not considered to be a necessity and can be sold in order to pay off creditors. However, many people are able to keep their home, car, retirement savings, and other necessary items when filing for Chapter 7 Bankruptcy. If you are considering filing for Chapter 7 Bankruptcy in Idaho, it is important to seek out the advice of an experienced attorney. They can help you understand the process and determine if it is the right decision for you.

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What happens to my debts when filing for Chapter 7 Bankruptcy?

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