Perfect Filing of Bankruptcy Under Chapter 7
The thought of bankruptcy is enough to scare anyone.
Especially if the only chapter you are eligible to file bankruptcy is chapter 7, the thought of losing everything you have can be devastating.
However, bankruptcy law is not that uncharitable and exempts many of the assets of the debtors that are needed to run their livelihood.
Many times it's seen that filing for bankruptcy doesn't affect your credit score as much as being under debt for long time.
Everyone understands that happenings like layoffs, illness and disability are beyond control as nobody wants to be under debt intentionally.
You must seek advice of a qualified and experienced lawyer in such a case.
Chapter 7 or 'Straight Liquidation' is the most familiar and most of the people think that this is the only way of filing bankruptcy.
If bankruptcy is filed under chapter 7, it will eliminate almost all the unsecured debts except alimony, child support, student loan, tax liens and fines incurred from criminal offences.
However, the new 'means test' requirement incorporated in bankruptcy law that is brought in force in year 2005 has made filing bankruptcy under Chapter 7 difficult.
Under "mean test" court will make a comparison of the income of the debtors, if the income is too less and the debt too high then they allow him to file under Chapter 7.
But if the income of the debtor is good enough that he can manage to pay to the creditors while managing his daily expenses then court recommend going for Chapter 13.
Straight Liquidation, as Chapter 7 is popularly known, is one of the most common for individual bankruptcies for people who are totally broke and have no regular income or assets to pay back the debts.
When you file the petition for bankruptcy your case is assigned to a bankruptcy trustee whose duty is to list all your non-exemptible assets, liquidate it and pay the money to the creditors.
But there are certain debts that can't be discharged under the Chapter 7 or, for that matter, under any chapter of bankruptcy law.
Some of these are student loans, alimony, debts related to fraud and child support.
But there are rare cases where a small part of such debts can be written off, and for advice on these you must contact expert lawyers for this.
Especially if the only chapter you are eligible to file bankruptcy is chapter 7, the thought of losing everything you have can be devastating.
However, bankruptcy law is not that uncharitable and exempts many of the assets of the debtors that are needed to run their livelihood.
Many times it's seen that filing for bankruptcy doesn't affect your credit score as much as being under debt for long time.
Everyone understands that happenings like layoffs, illness and disability are beyond control as nobody wants to be under debt intentionally.
You must seek advice of a qualified and experienced lawyer in such a case.
Chapter 7 or 'Straight Liquidation' is the most familiar and most of the people think that this is the only way of filing bankruptcy.
If bankruptcy is filed under chapter 7, it will eliminate almost all the unsecured debts except alimony, child support, student loan, tax liens and fines incurred from criminal offences.
However, the new 'means test' requirement incorporated in bankruptcy law that is brought in force in year 2005 has made filing bankruptcy under Chapter 7 difficult.
Under "mean test" court will make a comparison of the income of the debtors, if the income is too less and the debt too high then they allow him to file under Chapter 7.
But if the income of the debtor is good enough that he can manage to pay to the creditors while managing his daily expenses then court recommend going for Chapter 13.
Straight Liquidation, as Chapter 7 is popularly known, is one of the most common for individual bankruptcies for people who are totally broke and have no regular income or assets to pay back the debts.
When you file the petition for bankruptcy your case is assigned to a bankruptcy trustee whose duty is to list all your non-exemptible assets, liquidate it and pay the money to the creditors.
But there are certain debts that can't be discharged under the Chapter 7 or, for that matter, under any chapter of bankruptcy law.
Some of these are student loans, alimony, debts related to fraud and child support.
But there are rare cases where a small part of such debts can be written off, and for advice on these you must contact expert lawyers for this.