Chapter,Bankruptcy,Learn,How,Y law Chapter 7 Bankruptcy - Learn How Your Case May Proceed
When you work with an attorney, you will have no problem reducing the risks associated with getting your case in front of a judge and jury, or other formal court, when you need to. However, every case is different. It is important to work wi Bankruptcy is a situation, wherein an individual is termed as unable to discharge all the debts. When a person or a company is not able to pay off its creditors, it has an obligation to file a bankruptcy suit. In fact, a bankruptcy suit is a
Essentially, in a Chapter 7 bankruptcy your debts will be discharged, although some of your property may be sold to pay creditors. This method is mainly used for individuals who have just enough income to pay their most basic living expenses and nothing left to pay debts such as credit cards or medical bills. Get an idea of how the process usually works. After filing a petition for Chapter 7 bankruptcy at the court for the area you live in, a trustee is assigned to your case. You must divulge all of your sources of income as well as a list of expenses, proof of property ownership, and a copy of your most recent tax return. You also have to take a credit counseling class, available online, before filing your petition. The filing fees are usually under $300, but if your income is below the poverty line they can be waived. If you are married, you both have to provide the required documents even if only one of you is actually filing, because the court considers the financial position of the entire household. Some of your property may be considered exempt, meaning it cannot be seized for payment. The list of items that can be exempted differs from state to state, but it usually includes clothing and furniture up to a certain value, computers, and any tools required for your trade. Many states will allow you to keep secured property that you are making payments on, which may include a vehicle or a house, if you can arrange new loan terms. The trustee liquidates any nonexempt property and then disperses the proceeds to pay your various debts. When you file your petition, most collection action against you is stopped immediately, at least for a short time. During that time, creditors cannot call you, file a lawsuit against you, or continue a wage garnishment. The clerk will issue notices to all of your creditors informing them that you are under the protection of the court and usually they will include your attorney's number to call if they have any questions. In addition, if they continue to harass you even after receiving court notification, they can be fined. About four weeks after filing the petition, the trustee handling your case will meet with you, your attorney, and your creditors. You will be put under oath and asked questions by the trustee and creditors, such as whether you understand the ramifications of seeking discharge from your debts and its effect on your future credit rating. Within about ten days of that meeting, he will present his findings to the bankruptcy judge. If he determines that there was no abuse in your case when you took the mandatory means test, your debts will be discharged by the court. From start to finish, the entire process takes four to six months, with the cost ranging from $1000 to $2000, depending on the difficulty of your case. Although your credit rating is severely affected when you file Chapter 7 bankruptcy, you will soon find that your mailbox is overflowing with credit offers. Ironically, since you cannot file again for approximately seven years after discharge, you will suddenly be considered a good risk.
Chapter,Bankruptcy,Learn,How,Y