ArticleZones.com » Finance » Bankruptcy » Important Points of Chapter 7 Bankruptcy
View PDF | Print View
Article By: JoeMacker
Total views: 16
Word Count: 409
Important Points of Chapter 7 Bankruptcy
Chapter 7 Bankruptcy - Who Can File?
Chapter 7 bankruptcy is available to individuals and some businesses. In order to file Chapter 7 assets should be limited to those that can be claimed as exempt.
Usually, filing for Chapter 7 may be best of one has a lot of assets. However, the decision on whether you are able to file for Chapter 7 is up to the court.
The Process
The process of filing a Chapter 7 bankruptcy starts with collecting all the information about your debts and your financial situation. You will be required to meet with a counselor and attend counseling that will help you to decide if filing bankruptcy is the best option.
After going thought this first phase, you will then be able to start filing out the proper forms and filing them with the court. After this, you are required to attend court to plead your case. This will be done over the next few months.
As you can see, this is quite a long process. However, you do not need to worry because as long as you are still undergoing the process, you are protected from debt collection by creditors.
Risks of a Chapter 7 Bankruptcy
If you think bankruptcy is an easy way to clear your debts, think again. Recent changes in the bankruptcy laws has made filing bankruptcy more difficult and in some cases impossible.
Filing for bankruptcy has quite a number of negative effects. Firstly, you can lose your assets. Other than that you will have a damaged credit record. This is especially bad as it may be difficult for you to get loans and credits in future.
It is a good thing there is Chapter 13. You can file a Chapter 13 instead of a Chapter 7 if your income is deemed to be more than the set amount. So how do you pay back the amount? Well, the court can decide a repayment plan for you!
Now its time to put the knowledge to the test! You should always remember that bankruptcy is not an easy way out. And if you are serious about filing for Chapter 7, you need to be prepared for the consequences.
Article Source: ArticleZones.com
About the Author
Get to know more about Bankruptcy as it will have a long term effect. Read and find out more about bankruptcy by going to this website ==> http://www.outofbankruptcy.info
Comments
No comments posted.Add Comment
You do not have permission to comment. If you log in, you will be able to comment.More articles in this Category
1. Important Points of Chapter 7 Bankruptcy2. Understanding Chapter 13 Bankruptcy
3. Fixing Your Credit Score After Bankruptcy
4. Facing Bankruptcy - Is Credit Counseling The Best Option?
5. Personal Bankruptcy- Choosing Ch7 Or Ch13 Bankruptcy