Chapter 7 Bankruptcy - An Introduction
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?
No everyone can file for Chapter 7 bankruptcy. It is only available to individuals and also businesses. If you want to file for 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 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.
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.
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.
What are the Risks?
If you think bankruptcy is an easy way to clear your debts, think again. 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?
No everyone can file for Chapter 7 bankruptcy. It is only available to individuals and also businesses. If you want to file for 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 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.
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.
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.
What are the Risks?
If you think bankruptcy is an easy way to clear your debts, think again. 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:
Understand more about Chapter 7 Bankruptcy as it will have a long term effect. Find out more about bankruptcy today by visiting this website: http://www.outofbankruptcy.info
posted by Credit Counseling at
2:09 PM
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