Chapter 7 Bankruptcy
Chapter 7 bankruptcy is one type of bankruptcy that is available for people to file under the Bankruptcy Code. This form of bankruptcy is not available to everyone. Only certain people can file this type of bankruptcy and only people in certain situations should someone file this type of bankruptcy.
Who Can File Chapter 7 Bankruptcy?
Wondering who can file for Chapter 7 Bankruptcy? Well, it is only available to individuals and some businesses. Assets need to be limited to those that can be claimed as exempt in order to file for Chapter 7 bankruptcy.
In some cases, though, Chapter 7 may be best even if someone has more assets. The court, though, may rule that a person can not file a Chapter 7 if their assets are high enough to clear their debt.
Process of a Chapter 7 Bankruptcy
The process of filing for bankruptcy involves a lot of steps. Firstly, you need to collect all information about your financial situation. Next you may be required to attend counseling which helps you to decide if filing bankruptcy is the best option.
After going thought this first phase, you will then be able to start filing out the proper forms and filing them with the court. After this, you are required to attend court to plead your case. This will be done over the next few months.
As you can infer, the whole process will take some time but as long as you are going through this process, you are protected from debt collection by creditors.
Risks of a Chapter 7 Bankruptcy
Bankruptcy is not a simple solution when you do not want to pay your debts. In fact, recent changes in the bankruptcy laws has made filing bankruptcy more difficult and in some cases impossible.
Filing for bankruptcy has quite a number of negative effects. Firstly, you can lose your assets. Other than that you will have a damaged credit record. This is especially bad as it may be difficult for you to get loans and credits in future.
However, according to new laws, you may be able to file for Chapter 13 instead of Chapter 7. This can be done if your income is deemed to be more than the set amount. The court will then decide how you can pay back the amount you owe.
Now its time to put the knowledge to the test! You should always remember that bankruptcy is not an easy way out. And if you are serious about filing for Chapter 7, you need to be prepared for the consequences.
Who Can File Chapter 7 Bankruptcy?
Wondering who can file for Chapter 7 Bankruptcy? Well, it is only available to individuals and some businesses. Assets need to be limited to those that can be claimed as exempt in order to file for Chapter 7 bankruptcy.
In some cases, though, Chapter 7 may be best even if someone has more assets. The court, though, may rule that a person can not file a Chapter 7 if their assets are high enough to clear their debt.
Process of a Chapter 7 Bankruptcy
The process of filing for bankruptcy involves a lot of steps. Firstly, you need to collect all information about your financial situation. Next you may be required to attend counseling which helps you to decide if filing bankruptcy is the best option.
After going thought this first phase, you will then be able to start filing out the proper forms and filing them with the court. After this, you are required to attend court to plead your case. This will be done over the next few months.
As you can infer, the whole process will take some time but as long as you are going through this process, you are protected from debt collection by creditors.
Risks of a Chapter 7 Bankruptcy
Bankruptcy is not a simple solution when you do not want to pay your debts. In fact, recent changes in the bankruptcy laws has made filing bankruptcy more difficult and in some cases impossible.
Filing for bankruptcy has quite a number of negative effects. Firstly, you can lose your assets. Other than that you will have a damaged credit record. This is especially bad as it may be difficult for you to get loans and credits in future.
However, according to new laws, you may be able to file for Chapter 13 instead of Chapter 7. This can be done if your income is deemed to be more than the set amount. The court will then decide how you can pay back the amount you owe.
Now its time to put the knowledge to the test! You should always remember that bankruptcy is not an easy way out. And if you are serious about filing for Chapter 7, you need to be prepared for the consequences.
About the Author:
Get to know more about Chapter 7 Bankruptcy as it will have a long term effect. Find out more about bankruptcy today by going to this website: http://www.outofbankruptcy.info
posted by Debt Consolidation Loan at
2:05 PM
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