What happens when I file a chapter 7 bankruptcy?

According to the federal bankruptcy statute, a discharge is an emancipation of the debtor from individual liability for a selection of specific categories of debts. Put differently, the debtor is no longer required by law to pay any debts that are discharged. The discharge functions as a permanent order aimed at the creditors of the debtor that they desist from taking any form of collection proceedings on discharged debts, including legal action and contacts with the debtor, such as telephone calls, letters, and personal contacts. While a debtor is relieved of personal legal responsibility for all debts that are discharged, a legitimate lien (i.e., a charge upon particular property to secure payment of a debt) that has not been avoided (i.e., made unenforceable) in the bankruptcy case will continue after the bankruptcy case. Consequently, a secured creditor may implement the lien to recoup the property secured by the lien.

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