Chapter 7 bankruptcy law

The chapter 7 bankruptcy law is also called straight bankruptcy because it deals with the liquidation process. According to this law the person that files for chapter 7 bankruptcy must surrender all his properties to the bankruptcy trustee who will sell them and payback the creditors.

The process is not very complex and has some clear milestones. The Chapter 7 law details each one of these steps and gives explanations about the exceptions, regulations and required actions.

The law contains some key elements. These elements are the mean test, the exempt list, and the discharge.

The Chapter 7 bankruptcy means test is a way to determine if you can apply for Chapter 7.In this test you compare your family income with the median family income in your state (for a family with the same no of members.).If your income is lower than the median you can fill for Chapter 7, if not you are usually redirect to Chapter 13 bankruptcy.

The Chapter 7 bankruptcy law contains also the list of exempt goods. These are the goods the debtor can keep. This list varies from state to state so you should check this list before starting the procedures.

The discharge is the court order that states you no longer legally required to pay any of the discharged debts. The Chapter 7 bankruptcy law treats this subject in detail and also explains what options have your creditors.

The law explains in details who may fill for chapter 7 and who may not apply. It also lists the Chapter 7 bankruptcy forms a person must complete and also establish the fees.

This is just a short description of the Chapter 7 bankruptcy law. Each item is treated separately in this site so make sure you check other articles.