Chapter 7 Bankruptcy can give people a new start by allowing you to eliminate your credit card debt, medical bills, utility bills, and law suits. 

Chapter 7 Bankruptcy is designed to eliminate a person’s legal obligation on unsecured debt such as medical bills, credit cards, and payday loans and at the same time allow a person to keep their home and car.

It is important to note that a person can keep their house and they can keep their car and still eliminate credit card debt.

In order to have a successful Chapter 7 Bankruptcy certain requirements must be met.  A person must not have filed a previous Chapter 7 Bankruptcy within the last 8 years.  They must not have any major assets such as a house that was paid in full, they cannot have massive equity in a home, or own a brand new car that is paid in full, or make a considerable amount of income unless they also have correspondingly high expenses.

As long as none of these conditions are present a person will have the right to eliminate credit card and other unsecured debt and still be able to keep their house and car as if nothing ever happened.

A person can get a car payment reduced when they file a Chapter 7 Bankruptcy.  This is known as a redemption.  When a car is overfinanced and the car payment is upside-down a person can get the over financed portion of the debt eliminated and make reduced car payments.

Furniture, Computer, TV, and Stereo Equipment debt can work like a redemption and a Creditor can choose to settle the debt for a reduced amount, eliminate the interest rate on the original debt, and reduce the monthly payment on the household good.    

Personal Loans where people use their household goods as collateral for the personal loan can get eliminated in Bankruptcy.     

Chapter 7 Bankruptcy can help a person get their driver license reinstated when it has been suspended due to a car accident debt.