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.
Chapter 7 Bankruptcy - Who Can File?
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.
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.
Process of a Chapter 7 Bankruptcy
The process of filing for a Chapter 7 may be long as you are required to collect all the information about your debts and your financial situation. Other than that, you're also required to meet with a counselor and attend counseling.
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 see, this is quite a long process. However, you do not need to worry because as long as you are still undergoing 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.
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.
It is a good thing there is Chapter 13. You can file a Chapter 13 instead of a Chapter 7 if your income is deemed to be more than the set amount. So how do you pay back the amount? Well, the court can decide a repayment plan for you!
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.
Chapter 7 Bankruptcy - Who Can File?
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.
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.
Process of a Chapter 7 Bankruptcy
The process of filing for a Chapter 7 may be long as you are required to collect all the information about your debts and your financial situation. Other than that, you're also required to meet with a counselor and attend counseling.
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 see, this is quite a long process. However, you do not need to worry because as long as you are still undergoing 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.
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.
It is a good thing there is Chapter 13. You can file a Chapter 13 instead of a Chapter 7 if your income is deemed to be more than the set amount. So how do you pay back the amount? Well, the court can decide a repayment plan for you!
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.
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Get to know more about Chapter 7 Bankruptcy and the effect it has in your life. Read and find out more about bankruptcy by visiting this website: http://www.outofbankruptcy.info
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