Why file Chapter 7 Bankruptcy
Written by ady on July 11, 2009 – 9:49 pm -If filing for bankruptcy is considered to be a chance for debtor to end all his debts for good and anew; then opting for chapter 7 bankruptcy is an avenue to achieve the same comparatively quicker. Filing for chapter 7 bankruptcy means that the government will auction out all non-exempt property belonging to the debtor and distribute the money among the creditors. Most of the time, when the defaulter goes for chapter 7 bankruptcy, he or she is left no assets to lose and thus the whole process finish quicker.
There are many types of bankruptcy that defaulter] would consider to file for, but it may be a daunting job to choose the appropriate law that will caters to your requirements. As you can well understand from the title, the information here will focus on Chapter 7 Bankruptcy.
Do take note of the following if you want to be filing for this chapter in the right way:
- Always put bankruptcy as the final option and go for it only when you see that you you have no other avenues.
- Hire a bankruptcy attorney. An attorney/lawyer possesses enough technical know-how and expertise to guide your way in the whole process.
- Credit counseling is a rule set by the law that you have to attend.
- File petition. Doing so will stop the creditors from taking any court proceedings against you.
- Make sure that you complete all your document correctly
- Make sure that you make all payments of your fees promptly.
- After you have filed a petition, a meeting will be held in about a month’s time. The creditors will be there and they will question you with regards to your assets and financial capacity which you have to answer. This meeting is important and you cannot have a subsitute.
- According to the new bankruptcy laws, the [debtor who files for chapter 7 bankruptcy needs to go for a debtor financial management educational course held by credit counseling agencies.
In summary, if you have followed the above steps you should be safe to go ahead manage your debts.
So, now you know how to file chapter 7 bankruptcy, good luck!
Tags: chapter 7 bankruptcy
Posted in Bancruptcy |