Filing Chapter 7 Bankruptcy

Learn About The Benefits Of Filing Chapter 7 Bankruptcy Chapter 7 bankruptcy is a sheer legal process that helps businesses and individuals discharge their secured/unsecured debts.

However, one has to qualify through Means Test for Chapter 7 bankruptcy. In this bankruptcy process, one although gets to eliminate a range of debts, however it discounts obligations such as child support, tax debt, and student loans.

“The key benefit of Chapter 7 bankruptcy is that it allows an honest insolvent a fresh start,” says a bankruptcy attorney at Recovery Law Group.

Bankruptcy however isn’t an easy fix at all. If not guided by expert attorney, one may face repercussions, such as losing a major portion of their physical assets or having their credit to take a major hit. This is why it’s advisable that you consult with an experienced bankruptcy attorney to make the most of your bankruptcy choice.

Chapter 7 bankruptcy offers the exact financial rearrangement you need, but you will want to proceed under expert guidance only.

When should one consider filing for Chapter 7?

You must have tried getting around with your lenders, or consulting with a credit counselor, but there’s still no considerable solution, so you can manage all your debt.

Chapter 7 bankruptcy acts like a pause button for certain dues. Once your petition is filed, your creditors are resisted from making collection calls to you. Filing Chapter 7, however, means letting go off some of your assets. The bankruptcy law though differs from one state to another, and each state has classified assets as exempt or nonexempt. Thus, based on which state you live in, your stocks, home along with other nonexempt assets and investments you own could be at stake.

If you’ve been fretting over what assets you might have to let go, again consult with an attorney.

Discussing your case, and understanding the potential risks and possibilities will only help you proceed toward the best outcome.

What does the filing precisely involve?

Chapter 7 bankruptcy filing process typically takes 80 to 100 days, counting right from the filing day until the day your debts are finally eliminated. Hiring an attorney may not be a mandatory thing, but the reason why it’s still highly advisable is ‘irreversible repercussions’ especially when Chapter 7 bankruptcy is a last resort for you.

Here’re certain factors you must do during Chapter 7 bankruptcy:  You need settle your bankruptcy counseling under an approved agency and within 180 days before you file.  You will have to pass the “Means Test.” This test will determine if your income surpasses as an established amount. This test is to ensure that you are eligible to file Chapter 7 bankruptcy.  Following this you’ll file a petition in your local federal bankruptcy court. The process will typically include paying the court fees. There’ll also be requirements for additional information, including your income and expense details. One will also have to submit their most recent tax returns.  Remember to show up at the creditor’s meeting with the assigned bankruptcy trustee and one of your creditors who agrees to go along. You’ll be asked questions about the pattern of your debt, current financial situation, and assets under oath.  You will be required to accomplish a financial management course with the approved bankruptcy agency. Following the course you’ll submit a form that will confirm that you have completed the course i.e. (Form 423) in 60 days since the first date fixed for creditor’s meeting.  Finally, you’ll obtain the debt elimination, permanently stopping all your creditors from calling you to collect money on your debts.

This is to be noted that all your debts may not be dischargeable in Chapter 7 bankruptcy. To learn more on the same, consults with Recovery Law Group today!