Chapter 7 Bankruptcy
One of the most common options for bankruptcy is known as Chapter 7 bankruptcy, this type of bankruptcy is known as "liquidation bankruptcy". It can be one of the easiest and quickest ways for most people to file for bankruptcy. Chapter 7 bankruptcy is available for
Chapter 7 bankruptcy requires the filer to disclose all of their assets to the court. Someone who does not have assets will be determined as a no asset case and eventually their debt will be discharged. If you do have assets those assets will be given to the trustee to control. The trustee will help with the sale of your non-exempt assets and the money will be distributed to the creditors in order to satisfy the filer’s debts. The assets will be distributed to creditors based on priority determined by the bankruptcy code. Secured debt is considered a priority over unsecured debt.
Chapter 7 bankruptcy can eliminate most unsecured debt. Unsecured debt can include:
In October 17, 2005, changes were made to the bankruptcy code under the Bankruptcy Abuse Prevention and Consumer Act of 2005. Prior to the implementation of the new law, people could choose which type of bankruptcy suited them best. Now you must meet all of the new requirements under the new bankruptcy code. This act made several new changes to the current bankruptcy code. Under the new law to qualify for Chapter 7 bankruptcy you must complete an approved credit counseling course prior to filing for bankruptcy, you must reside in the state where you are filing for at least two years prior to filing and you must meet the new "means test".
In addition to the new requirements under the Bankruptcy Abuse Prevention and Consumer Act, the cost of filing for bankruptcy has risen. The increased complexity has burdened debtors, bankruptcy attorneys, and nearly every party associated with filing bankruptcy. Additionally, the increased complexity leads most debtors to seek an attorney rather than file a Pro Se bankruptcy case.
Chapter 7 Bankruptcy Lawyer
Chapter 7 bankruptcy can be a tricky undertaking, and one you probably don't want to take on blindly. An experienced chapter 7 bankruptcy attorney can help you navigate the process, answer all of your questions, and help keep the creditors off your back.
If you are faced with financial hardship and think that Bankruptcy might be an option, fill out the evaluation to the right.
Bankruptcy Term of the Day
The exclusivity period allows a Chapter 11 bankruptcy debtor the ability to negotiate the settlement of their debts by proposing and soliciting support for their bankruptcy repayment plan for bankruptcy reorganization without interference from creditors who may want to offer competing plans.
Latest Bankruptcy Question
The new Bankruptcy law in 2005 created a means test to determine eligibility for a Chapter 7 bankruptcy.
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