Chapter 7 bankruptcy pros & cons

Most of the persons that want to file for bankruptcy are choosing the Chapter 7 bankruptcy because is effective, easy and doesn’t require any pay back like on Chapter 13 plan.

A chapter 7 bankruptcy case it takes from there to six months and the person that is filling it will have the unsecured debts wipe out (he still need to pay the secure debts like mortgage, tax debs and other non no dischargeable debts.)

Although you can lose property in Chapter 7 bankruptcy, most of the persons don’t. The system let you keep most of the necessities and you have only a few possessions there are big chances that you’ll be able to keep them.

Not all persons are eligible for Chapter 7 bankruptcy. If you earn enough money to fund a Chapter 13 bankruptcy plan you won’t be let to apply for Chapter 7 and you will be redirect to a Chapter 13.

Even if the Chapter 7 bankruptcy sounds like the best solution there are some drawbacks .When you file for Chapter 7 bankruptcy, you get to keep only exempt property — property that is protected from creditors under state or federal law. You may loose also properties and assesses that are not listed on exempt list.

Also You won’t be allowed to file for Chapter 7 if you cannot meet some new requirements imposed by the 2005 revisions to the bankruptcy law. Under these new rules, you cannot file for Chapter 7 if you don’t meet some strict requirements.

Read Who Can File for Chapter 7 Bankruptcy? in order to be informed.