A General Introduction to Chapter 7 Bankruptcy and Its Offerings
If you are considering filing bankruptcy then chances are your options are Chapter 7 and Chapter 13 since those are the types that apply most to consumers. Simply put, Chapter 7 bankruptcy is the easiest and quickest type of bankruptcy because it permits the court to sell all your nonexempt property and relay the proceeds to your creditors. Chapter 7 is also known as “liquidation” or “straight bankruptcy.”
Before jumping the gun and filing Chapter 7 bankruptcy right away, you should consult a licensed bankruptcy attorney. The advice of an expert can go a long way in making sure your bankruptcy filing goes as smoothly as possible. The attorney may also be able to save you from making a mistake and may also help you find loopholes in the bankruptcy rule books.
Digging Deeper Into Chapter 7 Bankruptcy
If you’re worried about whether or not you are eligible for Chapter 7 bankruptcy then you should just leave it up the “means test” which all candidates for Chapter 7 bankruptcy must go through to determine whether or not they can file Chapter 7. Keep in mind that you are required to pay any and all overdue tax returns by rule of the means test.
When it comes to filing the actual petition for your bankruptcy, there are some important documents you will need in order to complete the process. You will need lists of all your creditors, property, and monthly living expenses; as well as the type and amount of your claim, source, and the amount and frequency of your income.
“But Do I Lose Everything With Chapter 7 Bankruptcy?”
There are certain items that you can exempt from what the court sells in order to pay off your creditors. These nonexempt items differ from state to state but can include:
• Professional tools, trade supplies
• Unmatured life insurance contract
• Various real estate
• Proceeds from a judgment
• Prescription health aids
• Disability, social security, veteran’s benefit, illness or unemployment benefit
Learn More About Chapter 7 Bankruptcy Today
Although Chapter 7 bankruptcy has been described as the quickest and easiest form of bankruptcy that does not necessarily mean it is a walk in the park. Because filing any type of bankruptcy is such a financially heavy decision, you will want to do whatever it takes to make sure it’s done right. Talk to a licensed bankruptcy attorney today to learn more about Chapter 7 bankruptcy and whether or not it is the best option for you.
