Why Chapter 7 Bankruptcy
Ever wondered what Chapter 7 bankruptcy is? Well if you are, I think this article will help. Well, Chapter 7 bankruptcy is a type of bankruptcy that is available for people to file under the Bankruptcy Code. However, this type of bankruptcy is not available to everyone. Want to know more? Read on.
Eligibility For 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.
Usually, filing for Chapter 7 may be best of one has a lot of assets. However, the decision on whether you are able to file for Chapter 7 is up to the court.
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 this is done, you will then stat filling up some forms. After filling up the forms, you have to attend court to plead your case. The decision will be up to the court.
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.
What are the Risks?
Thinking of an easy way out to settle your debts? Count filing for Chapter 7 out. This should be your last resort as recent changes in the bankruptcy laws have made bankruptcy almost 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.
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!
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.
Eligibility For 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.
Usually, filing for Chapter 7 may be best of one has a lot of assets. However, the decision on whether you are able to file for Chapter 7 is up to the court.
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 this is done, you will then stat filling up some forms. After filling up the forms, you have to attend court to plead your case. The decision will be up to the court.
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.
What are the Risks?
Thinking of an easy way out to settle your debts? Count filing for Chapter 7 out. This should be your last resort as recent changes in the bankruptcy laws have made bankruptcy almost 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.
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!
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.
About the Author:
Get to know more about Chapter 7 Bankruptcy and the various new laws on bankruptcy. Read and find out more about bankruptcy by visiting this website: http://www.outofbankruptcy.info
posted by Debt Consolidation Loan at
2:15 PM
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