With 2012 now behind us and 2013 here, many people seek ways to get a new financial start in the new year. For millions of people buried in debt chapter 7 bankruptcy is a leading choice for this to happen. Chapter 7 Bankruptcy or bankruptcy of liquidation as it is sometimes mentioned, is a quick way to eliminate unsecured debt. Chapter 7 Bankruptcy can be filed by individuals as well as businesses. The ultimate goal of the deposit of the bankruptcy of Chapter 7 and why the Congress has created that the American working honesty has gained a new start by eliminating overwhelming debt.
A typical chapter 7 case takes about three to six months from start to end. I begin with the actual deposit of the bankruptcy petition at the bankruptcy court. The petition of bankruptcy must include detailed accounting of the debtor’s income and expenses. Proof of income is required by the Court in the form of bank statements, pay-heels and income tax returns. All assets and personal property must be listed. A complete list of debtor’s creditors must also be included in such a way that they are notified from the bankruptcy case by the Court. This part of the bankruptcy case is generally the most tedious and involved in the debtor as much detailed information and the petition must be fulfilled accurately to prevent the case rejected. If the debtor has some doubts, it is better to hire a bankruptcy lawyer to prepare Chapter 7 Case of Bankruptcy to ensure that the case is going well from start to finish.
In Chapter 7 cases, part of the debtor’s property may be sold by the trustee so that the product can be divided and attributed to the creditor to repay a portion of the debt. The return debtor obtains remaining unsecured debts eliminated or erased. This is the “liquidation” aspect of Chapter 7. It is not very common that a debtor has personal property or assets liquidated in the bankruptcy of Chapter 7. This is due to the exemption laws that constitute Bankruptcy laws that allow a debtor to maintain a certain amount of property considered exempted. The property that the debtor is authorized to maintain or exonerate, in the bankruptcy of Chapter 7 is determined by the specific exemptions indicated in the law of the State. The laws on bankrupt exemptions vary from state to state with some states allowing more generous exemptions to debtors than others. However, the debtor must file a bankruptcy in the state they reside. This is another good reason for helping a bankruptcy lawyer. Bankruptcy lawyers are very familiar with the exemption laws of their states and can use them to the maximum to protect the maximum amount of personal property for their client. The lawyer can even feel that it is more useful than their client uses federal exemptions rather than state exemptions to protect the most for their client. In addition, if the debtor owes money on a secure debt like a car or a house, the debtor may choose to abandon the property in the case of bankruptcy and walk from him without any financial obligation to the lender. The debtor can also choose to maintain the property in the case of bankruptcy as long as it can afford to continue making payments and the lender accepts.
The deposit of Chapter 7 The Bankruptcy of the New Year can be a quick and easy solution for people buried in debt to get this new start than Chapter 7 has been designed for.