Tuesday, May 4, 2010

Chapter 7 bankruptcy -Get Real Answers

If you are considering Chapter 7 bankruptcy the best advice and information you can get is person to person with a bankruptcy attorney. There is much about this type bankruptcy that depends on how you “package” your financial situation. There is many things you can do on the internet these days, figuring out if you "REALLY " qualify for bankruptcy isn't one of them. 

A “fresh start” or “clean slate”, Chapter 7 is a form of bankruptcy designed to let people (and sometimes businesses) get out of debt without repaying any of the “unsecure” creditors. While Chapter 7 also requires the person(s) filing go turn over to the bankruptcy trustee all “non-exempt” assets, skilled planning with an experienced bankruptcy lawyer can usually ensure all the filer’s assets are exempt (i.e., the filer gets to keep the property.)

 With Chapter 7, the Court, not the creditors, decides whether any assets should be sold to pay creditors.  While there is both an art and a science to actually completing the documents to be filed in a Chapter 7, much greater skill is needed to plan for minimum loss to the person filing.  If the person filing Chapter 7 can’t pay reasonably necessary living expenses and pay something to the unsecured creditors, the Chapter 7 filer should sail through the process pretty smoothly.

A Chapter 7 case must be filed in the venue (district) where the person filing has lived for the better part of the last 180 days.  Not surprisingly, the process requires the person filing to bare his / her financial soul to the court and the creditors.  All income, assets, debts and creditors must be disclosed.  Again, careful and skillful planning is essential!. Most bankruptcy lawyers will talk to you free at least the first time.Take them up on the offer, you deserve it.