If you qualify, Chapter 7 bankruptcy wipes out all your qualifying debts. (Some debts, such as most student loans, most past-due taxes, and family support and property-distribution agreements, will not be discharged.) Once all the paperwork has been completed, the Chapter 7 bankruptcy process can be over quickly, in about three months.

Although the bankruptcy process takes care of your immediate debt problems, it will take time to rebuild your credit score. Bankruptcy will be shown on your credit report ten years–yet your credit score may improve beyond the pre-bankruptcy level, and you may be eligible for a mortgage, within two to four years.

Not everyone qualifies for Chapter 7 bankruptcy, and it’s not suitable for everyone. Ms. Cully will help you complete the means test to determine if you qualify and whether it makes sense for you.