By the time you finish reading this, you will know the important point of Chapter 7 bankruptcy. If you are thinking that everyone can file for this type of bankruptcy, you are wrong. Only certain people can file for Chapter 7 bankruptcy. Well, if you are wondering who, you should read on.
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.
Even though sometimes the court may rule that a person is not able to file a Chapter 7, at times, it may be one of the best moves you can make.
Chapter 7 Bankruptcy Process
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.
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.
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
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.
So, there you have it! The important points of bankruptcy Chapter 7, one thing that you should remember; bankruptcy should not be seen as an easy way out to settle your debts and you will end up losing you assets. However, if you are serious about filing for Chapter 7, you should think about the result of filing for one. - 16036
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.
Even though sometimes the court may rule that a person is not able to file a Chapter 7, at times, it may be one of the best moves you can make.
Chapter 7 Bankruptcy Process
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.
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.
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
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.
So, there you have it! The important points of bankruptcy Chapter 7, one thing that you should remember; bankruptcy should not be seen as an easy way out to settle your debts and you will end up losing you assets. However, if you are serious about filing for Chapter 7, you should think about the result of filing for one. - 16036
About the Author:
Facing possible bankruptcy? Now find out more about Chapter 7 Bankruptcy as it will have a long term effect. Read and find out more about bankruptcy by going to this website: http://www.outofbankruptcy.info
