Chapter 7 Bankruptcy refers to the chapter of the Bankruptcy Code found in Title 11 of the United States Code. It’s commonly known as liquidation bankruptcy, involving the sale of a debtor’s non-exempt assets by a trustee. Any proceeds obtained by the bankruptcy trustee are then turned over to creditors.
A Chapter 7 Bankruptcy filing becomes a necessary step in the process of recovery from deep financial debt and the inability to catch up in order to live a standard lifestyle. Once all other avenues have been explored including debt consolidation then a consultation with an attorney specializing in bankruptcy is the next step.
By qualifying and filing for Chapter 7 bankruptcy the current debt-load is completely cleared* and a new start commenced in order to work toward a fresh start and clear credit rating. In some but not all cases creditors get pay through a liquidation of certain assets. A bankruptcy lawyer will be able to assist, advise and guide as well as fill the necessary documents to file the petition to begin and end the process as a reliable source and an understanding advisor.
Know this before filing for a petition of bankruptcy:
The filing of a petition of bankruptcy is quite complex and so people are advised to use a bankruptcy attorney to:
- Fully understand the process.
- Know what their rights are concerning homes, cars and other important assets.
- Feel comfortable that the application will be complete.
- Advised as to whether they qualify.
- Know what debts fully qualify to be completely cleared and which will remain.
- How to move forward toward a better future.
As you proceed:
At one time filing for bankruptcy protection was an embarrassment and came with a feeling of shame but that is no longer the case. In today’s brutal economy maybe every day, capable and hard-working people have had to file for Chapter 7 Bankruptcy to move forward with their lives.
It is advisable to inquire with your bankruptcy attorney what debts will be covered and what debts will remain. There are many myths about filing a petition for bankruptcy: It’s advisable to work with a bankruptcy attorney in your area as well, so do your local research.
No matter what you have heard via word of mouth, the only way to know the true facts that apply to your own personal situation is to make an appointment with a Bankruptcy Attorney and find out how filing for Chapter 7 Bankruptcy protection can facilitate you and make your life a lot less stressful.
*some restriction apply