Online Calculator | How Chapter 7 Bankruptcy Can Get You Out Of Trouble

How Chapter 7 Bankruptcy Can Get You Out Of Trouble

There are a couple different options you can pick from when filing for bankruptcy.  Having a basic understanding of how they work will help you decide what filing of bankruptcy will work for you.  This information will explain how to qualify, what debt Chapter 7 covers, and how this kind of filing works for you.  You will need to fully   understand what Chapter 7 bankruptcy is.  Chapter 7 covers debtors selling their non-exempt items to pay off their creditors, yet keeping all the necessities through legal filing.  You will turn over all your non-exempt assets to a court-ordered trustee to sell off your assets and evenly distribute funds amongst your creditors.

How will you know who qualifies and who does not for Chapter 7 relief?  Making less than typical income and being in deficit way over your head should qualify you to ask for Chapter 7 bankruptcy.  The only ways that you do not qualify is if you were already allowed Chapter 7 discharge in the last 6 years, if you have already claimed Chapter 13, or if you are caught lying, hiding, or trying to harm property to defraud your collectors.

When claiming Chapter 7 there are some assets that you will be able to keep and some that you will be asked to give up.  This asset list is just a sample as your circumstance can differ from another person’s.  There are some non-exempt item examples such as second vehicles and second homes, family antiques and collectible items, as well as bonds and other types of investments.  Household items and furnishings, public benefits, vehicles up to a certain value and equity in your house are a list of exempt item samples.

Filing for bankruptcy doesn’t positively mean that you will get out of all your financial obligations.  Some of your payments will be dischargeable and some of your items will be non-dischargeable.  Some things that you can be discharged from will be personal loans, credit cards, leases, company debts and vehicle accident claims.  Non-dischargeable debts include trust fund taxes, student advances and child support, as well as restitutions and law fines.

You will begin to quickly see some of the advantages when you file for Chapter 7 bankruptcy. The first thing will be a stop to all collector harassment.  You will no longer be harassed by banks and collectors by order of the court.  It will also put an automatic hold on home foreclosures. The best answer to your mortgage will be to work out an appropriate payment plan.  Although, when it comes to liens, you will have to get a court order to have them dismissed.

It is a major life decision to elect to claim  bankruptcy.  It is important that you get advice from someone that you can trust.  A qualified expert is needed when you decide to do something that will change your life forever.  In Southern California, you can find a knowledgable Woodland Hills bankruptcy attorney or Reseda bankruptcy attorney easily.

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