When filing for bankruptcy, there are different types of bankruptcy to consider. There are Chapter 13, Chapter 11 and Chapter 7. Chapter 7 is the most popular bankruptcy filed in this country by consumers. However, it may be difficult to decipher the rules and regulations of Chapter 7, especially without guidance from a bankruptcy attorney. For how do you know if you qualify? What kind of outcome should you expect? What required paperwork needs to be prepared? To answer a few of these questions, here is a simple outline of what Chapter 7 Bankruptcy is about and why more people file for it than any other type.
Do You Qualify?
First off, bankruptcy is a complicated matter and you should always hire a legal professional to answer questions and manage the case the entire way. With that said, you and a bankruptcy lawyer need to discover if you qualify for Chapter 7 Bankruptcy or not. Ask yourself if you have the means to pay back the creditors. Are you earning income? If you are unemployed, in a financial bind, then consider filing Chapter 7. The best way to gauge is to think about your circumstance and see if the criterion for Chapter 7 Bankruptcy benefits your situation. Turn to your bankruptcy attorney and lean on him/her. Inquire about the necessary details, then, once you have gathered all the facts, the two of you will be able to make a well-informed decision together.
What Happens to Your Belongings?
Under Chapter 7 Bankruptcy law, you will be at-risk of losing all your possessions. It may not happen, but you need to be prepared if it does. The reason being is the court assigns a court-appointed trustee to your case. The court trustee will accumulate your entire non-exempt property, put it up for sale with any assets leftover, and circulate the money from the monetary transactions to the proper creditors. This gives you an opportunity to start fresh. You get a chance to build your own financial nest, again, without the hounding of creditors constantly nagging you. It allows you the freedom to breathe, which helps you regain focus on how to prevent bankruptcy from happening again in the future.
What is a Bankruptcy Discharge?
After a specified amount of time from the date of filing, on average 3-5 months, the court will grant you a dismissal of non-exempt debts. Translation, debts accrued will no longer be your responsibility. You will not have to pay it back. This is a huge sigh of relief for it prevents creditors and collection agencies from contacting you in regards to collecting payment. As a result, the harassment from creditors stops.
Bankruptcy of any kind is a difficult process to go through. There are many tricky intricacies to bankruptcy law. Thus, you need to make sure you hire an experienced, successful and effective bankruptcy attorney. Ask your city bankruptcy courts for a list of successful bankruptcy attorneys. Find an Arizona bankruptcy attorney, Phoenix bankruptcy attorney or a Scottsdale bankruptcy attorney today.