A set of uniform laws have been passed by Congress in order to govern how bankruptcy is dealt with. In these bankruptcy laws, or the bankruptcy code, there are ways protect the the debtor from being harassed while they are trying to pay off their loans.
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Chapter 7 bankruptcy is when you essentially file for liquidation – meaning your assets will be sold of to pay off creditors. For the person who is unsure about the type of bankruptcy filing action to take they need to discuss with their lawyer all of the different courses and options that can help.
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