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What happens when I file a chapter 7 bankruptcy?
Under the federal bankruptcy statute, a discharge is a
release of the debtor from personal liability for certain
specified types of debts. In other words, the debtor is no
longer required by law to pay any debts that are discharged.
The discharge operates as a permanent order directed to the
creditors of the debtor that they refrain from taking any
form of collection action on discharged debts, including
legal action and communications with the debtor, such as
telephone calls, letters, and personal contacts. Although
a debtor is relieved of personal liability for all debts
that are discharged, a valid lien (i.e., a charge upon specific
property to secure payment of a debt) that has not been avoided
(i.e., made unenforceable) in the bankruptcy case will remain
after the bankruptcy case. Therefore, a secured creditor
may enforce the lien to recover the property secured by the
lien.
If you still have questions you can schedule a free consultation with a bankruptcy attorney.
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