Chapter 7 Bankruptcy is currently the most commonly filed for type of bankruptcy in the United States. This is because it is one of the quickest and easiest ways to go about the process, though this does not mean that it will be simple altogether. In fact, any type of bankruptcy will have a serious impact on your credit report and on your financial status and situation. Therefore, it is imperative that you research all other possible courses of action and assess their applicability to your situation before choosing to file for Chapter 7 Bankruptcy.

If you do determine, however, that Chapter 7 bankruptcy is the best option for your situation, there are some rules, regulations, and basic information that you should be aware of. You may choose to file Chapter 7 bankruptcy individually or as a business. If you file as an individual, you will have to do so in a federal court, preferably with the assistance of a certified bankruptcy attorney in your area. Not having an attorney can make the process virtually impossible to navigate and could result in a negative experience with bankruptcy. If your financial situation prevents you from hiring an attorney, you should be aware that there are resources to help you if you are willing to put in the time and effort required to look for them. Speaking to a credit counseling service or agency is often the first step in obtaining this kind of assistance. During a Chapter 7 proceeding, your assets, excepting those which are exempt, will  be seized and used to pay off your debts in full. After this, you will be virtually debt free, but your credit will also be impacted for a period of ten years. In some cases, depending on your financial situation and on your state of residence, some debts may still remain even after the bankruptcy proceeding is complete. An attorney or financial advisor can help you to better understand how certain rules will impact your situation. The same holds true if you choose to file as a business. Your business will cease to operate and all company assets will be sold and used to pay off creditors.

You may be worried that after your bankruptcy is complete, you will not have any hope left. This, however, is not true. Though the bankruptcy will remain on your credit for the ten years mentioned above, you can still take steps to rebuild your credit. In fact, sometimes filing for bankruptcy can be a positive step, since it will eliminate many or even all of the mounting debts against you. It might be difficult to obtain credit cards, loans, or housing, but if you start small, it will not be impossible. Maintaining consistent employment and housing and paying off any and all bills promptly will slowly help you to rebuild and repair your credit. Therefore, filing for bankruptcy should be thought of as a new opportunity and not as a punishment.