How Bankruptcy Helps Eliminate DebtIf your concerns are unrelated to foreclosure, and instead focused on solving your unsecured debt problems, Chapter 7 may be a better fit.
Through Chapter 7 bankruptcy, filers may be able to eliminate some or all of their unsecured debts, including credit card bills, medical debt, and some personal loans. In addition, Chapter 7 also provides the benefits of the automatic stay.
While the automatic stay can stop foreclosure, it may also:
- Stop wage garnishment
- Prevent an eviction
- Put an end to creditors' harassing phone calls and letters