A Chapter 7 bankruptcy frees you from personal liability for the debts of high and let the creditors to contact you or threatening you, or take any action against him in an attempt to collect those debts. The U.S. bankruptcy court estimated that almost 99% of all applicants for Chapter 7 bankruptcy shocked if it is your first time, mainly because of their low incomes and high debt ratios. Under the Bankruptcy Code 4004 (c), most bankruptcies are discharged within 60 to 90 days after the petition is filed to the court and the creditors' meeting is held. Therefore, there is very little chance that will not be granted a discharge in Chapter 7 bankruptcy. Among the reasons why a Chapter 7 discharge can not be granted include:

* You did not explain clearly the loss of use of assets
* You are not filed financial records, credit card or other important evidence made by the bankruptcy trustee
* You did not attend the hearing in bankruptcy court or meeting with all creditors
* Property is transferred fraudulently to his relatives / family, hidden or destroyed property that would have otherwise become the property of the bankruptcy court under USC § 727 of the Bankruptcy Rule 4005.
* You have made false statements or promises to the order of the Oath.

Note that some states allow creditors to still retain the rights of property that has been discharged in Chapter 7 bankruptcy. A debtor who wishes to dispute that right must be willing to "reaffirm" the debt, that is, must be willing to make payments on the debt based on a modified payment schedule with a lower interest rate and principal payment. Take a simple example. You own a car worth $ 8,000 you would like to keep after you receive your Chapter 7 bankruptcy. However, only the majority of states allow a vehicle up to $ 5,000 of value, therefore has a value in excess of $ 3,000 that can be reaffirmed by the creditors. If creditors do not wish to retain the rights to $ 3.000 in order to minimize their losses, the bankruptcy trustee U.S. asked to sign a "reaffirmation agreement" with that will have to make monthly payments to creditors in excess of this value $ 3.000 you want the right to maintain.

In short, a reaffirmation is an agreement between you and the creditor that you will continue making payments on some debts, even after receiving their Chapter 7. In return, the creditor promises that as long as you keep making payments, he / she will not recover the assets you'd like to keep after bankruptcy. If you choose to reaffirm a debt, the reaffirmation agreement must be signed and complete before the discharge is granted. A written agreement to reaffirm the debt must be signed and a copy to the bankruptcy court and you do not have a lawyer representing him, the agreement must be approved by a judge.