Chapter 7 Bankruptcy In 5 Minutes Or Less
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?
Chapter 7 bankruptcy is available to individuals and some
businesses. In order to file Chapter 7 assets should be
limited to those that can be claimed as exempt.
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 a Chapter 7 bankruptcy starts with
collecting all the information about your debts and your
financial situation. You will be required to meet with a
counselor and attend counseling that will help you to decide if
filing bankruptcy is the best option.
You will then be able to start filing out the proper forms
and filing them with the court. Over the next few months
or so you will be required to attend court and plead your
case. The court will then decide if your bankruptcy is
granted or not.
The whole process can last quite some time, but during the
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.
You are at risk of losing your assets because they can be
taken to repay debts. You are also going to end up with a
damaged credit record. The effects of a bankruptcy can
last seven to ten years and can really hurt your ability to get
loans and other forms of credit in the future.
New laws may require you to file a Chapter 13 instead of a
Chapter 7 if your income is deemed to be more than the set
amount. The court can decide that a repayment plan is
better for your situation instead of actually clearing your
debts.
Bankruptcy should not be looked at as a way to get out of
your financial obligations because you will end up paying in
the end in some way. Additionally, not every debt can be
cleared through bankruptcy. If you take the process
seriously then you should end up with the result you
desire.
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