Understanding How to Go About Filing For Chapter Seven Bankruptcy
The term Chapter 7 bankruptcy is a term that is thrown about a great deal in the media, but clear and concise explanations of the term are usually not offered. Because of this, there is some confusion as to what exactly chapter 7 bankruptcy actually is and this sometimes leads to people making critical errors when filing!
It is more than understandable that most of us will want to avoid getting into bankruptcy proceedings. Naturally the idea of being in a situation where your debts are worth more than what you earn is not very popular.
There isn't just one kind of bankruptcy proceeding, in fact there are a number including chapter 7 (the focus of this article) and Chapter 11. Chapter seven is more for individuals.
The Definition Of Chapter 7 Bankruptcy
Chapter 7 bankruptcy as defined by US and its courts law refers to the action or liquidating not legally exempt from liquidation assets with the desired outcome of paying back creditors and debtors alike.
If you are a corporation, business and or partnership you will also be able to apply for this chapter like an individual. Chapter 7 bankruptcy is however different for individuals in that they have open to them a special extra clause in the bankruptcy filing framework.
The special clause for the public is called a discharge. What it basically means is that the public are able to free themselves totally from some of their debts.
How to get started filing chapter 7 bankruptcy
On a baseline level, those filing for Chapter 7 must provide copies of tax returns; executed contracts and leases that have been expired; financial affairs statements; proof of assets and liabilities; and copies/schedules of current expenditures and income.
For individuals there are additional items that must be provided to the court as well. These items include copies of credit counseling reports and repayment plan programs, employer payments and statements of income, interest payments on student loans, etc.
The information in this document is very brief and general, if you need to find out more about chapter 7 bankruptcy and others, a good place to start would be with the links in this article and also with the US courts website. If you do file for bankruptcy make sure you get a good lawyer.
It is more than understandable that most of us will want to avoid getting into bankruptcy proceedings. Naturally the idea of being in a situation where your debts are worth more than what you earn is not very popular.
There isn't just one kind of bankruptcy proceeding, in fact there are a number including chapter 7 (the focus of this article) and Chapter 11. Chapter seven is more for individuals.
The Definition Of Chapter 7 Bankruptcy
Chapter 7 bankruptcy as defined by US and its courts law refers to the action or liquidating not legally exempt from liquidation assets with the desired outcome of paying back creditors and debtors alike.
If you are a corporation, business and or partnership you will also be able to apply for this chapter like an individual. Chapter 7 bankruptcy is however different for individuals in that they have open to them a special extra clause in the bankruptcy filing framework.
The special clause for the public is called a discharge. What it basically means is that the public are able to free themselves totally from some of their debts.
How to get started filing chapter 7 bankruptcy
On a baseline level, those filing for Chapter 7 must provide copies of tax returns; executed contracts and leases that have been expired; financial affairs statements; proof of assets and liabilities; and copies/schedules of current expenditures and income.
For individuals there are additional items that must be provided to the court as well. These items include copies of credit counseling reports and repayment plan programs, employer payments and statements of income, interest payments on student loans, etc.
The information in this document is very brief and general, if you need to find out more about chapter 7 bankruptcy and others, a good place to start would be with the links in this article and also with the US courts website. If you do file for bankruptcy make sure you get a good lawyer.
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Read additional How To File Bankruptcy Facts here. The blog is responsible for the How To File Chapter 7 Bankruptcy article you just read!
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6:39 AM
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