Chapter 7 bankruptcy is the process of cancelling out your
debts through liquidation. Often times
this form of bankruptcy is called the ‘straight’ or ‘liquidation’
bankruptcy. Here are the things that you
should know about Chapter 7:
Process
The first step of filing for Chapter 7 is to gain a
petition. Once you have this you will be
assigned a trustee to take over your case.
They are knowledgeable about assets and properties, and they will be
responsible for separating your unsecured debts from your secured debts. From there you will have to pay off your
secured. It’s the unsecured debts that
take a little more consideration.
The trustee will look at your properties and classify which
ones are exempt and which are non-exempt.
They will then liquidate your non-exempt properties and pay off your
creditors.
Essentially you are putting all of your trust into the trustee. You will no longer have control over your
financial affairs or your property. They
are responsible for selling off your assets, and repaying your creditors.
Cost
It costs around $300 dollars to file and administrate the
Chapter 7 bankruptcy process. It will
also cost a decent amount of your time.
The process usually takes anywhere from four to six months, and may
require courthouse visits.
Who is eligible?
If you have already had a bankruptcy discharge in the last
6-8 years you will not be eligible to file again for Chapter 7. Also, your income and expenses will be looked
at, and it will be determined if you are in the position to feasibly repay your
debts. If it is determined you can
repay, then you will be put on a Chapter 13 repayment plan.
Bankruptcy is a tricky concept, and there are many things
that need to be known before filing.
It’s always advisable to talk to a lawyer before, and throughout the duration
of the Chapter 7 process.
No comments:
Post a Comment