Chapter 7 Bankruptcy – the basics
Here are some basic information about Chapter 7 Bankruptcy.
How it works
In chapter 7 bankruptcy (is also named “liquidation” bankruptcy) you get all your debts canceled but you may have to let the bankruptcy court liquidate some of your assets. The money will be used to pay your creditors
This type of bankruptcy is called Chapter 7 Bankruptcy because it refers to the chapter of the federal Bankruptcy Code that contains the bankruptcy law
How much it cost.
The bankruptcy process takes about 4 to 6 months and it cost 299 usd in administrative fees. It is also necessarily to go at least one time at bankruptcy courthouse.Also you need to complete credit counseling with an agency approved by the United States Trustee.
Who Can File
You cannot apply for Chapter 7 Bankruptcy if you already benefit from a bankruptcy discharge in the last 6 to 8 years. Also you cannot apply for Chapter 7 Bankruptcy if based on your income, expenses, and debt burden you could complete a Chapter 13 repayment plan.
Chapter 7 Bankruptcy Forms
To file for Chapter 7 you need to complete a petition and a number of forms and send those to the bankruptcy court in your area.The forms you need to fill ask you to describe the following:
- your property
- your assets
- your current money income and expenses
- your debts
- property you claim the law allows you to keep through the bankruptcy process.
- property you owned and money you spent during the previous two years
- property you sold or gave away during the previous two years.
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