Chapter 7 type of bankruptcy was established by Congress to permit individuals who are heavily burdened by debt to make a fresh start by freeing themselves from unsecured debts. It is apt for debtors who aren’t able to pay off their debt back to the creditor. Chapter 7 is also known as “liquidation” as debtors may need to surrender a part of their assets in lieu of riddance from their debts.
An Abogado de bancarrota capítulo 7 en Miramar will help people having huge unsecured debts like credit card bills, subscriptions, medical bills, personal loans, garnishments or memberships.
When people are stuck in the stressful condition of large debts they begin to look for various solutions to come out of the vicious circle. They consider liquidation of their assets like their retirement accounts, home, car and other possessions.
They start using the credit card for their indispensable necessities, which in a course of time leads to accumulation of huge outstanding amounts with added interest. This leaves the debtor in a much more complicated situation. A debt relief attorney provides his/her client with a progressive plan to come out of these kinds of situations.
Many people go through complicated financial situations as they are burdened with some or the other debts. Monthly installments become a big problem when they exceed one’s capacity. Bankruptcy is also one of the legal processes that help in making a fresh financial start.
How to deal with it?
A Chapter 7-Bankruptcy is like a new start for Irwin Insolvency and individuals with no further hope of improving their present financial situations. It is a common bankruptcy form and involves liquidation of the debtor’s personal assets.
Most of the debtor’s assets are disposed of and the money is distributed among the creditors. However, the state of Ohio does permit keeping of valuable assets, including one’s car and home.
A chapter 7 attorney and his legal team will figure out if Chapter 7 will be the best solution for a debtor and row the person from start to finish through the filing process. With the vast knowledge of the bankruptcy law, the attorneys handle the entire paperwork with great detail and update the clients throughout the process.
They try to protect their clients from repossessions and harassing phone calls, save their property from foreclosure and create a path for a fresh financial start.
A Complete Overview of Chapter 7 Bankruptcy
Trustee is assigned in Chapter 7 bankruptcy for liquidation of the non-exempt assets so as to pay off the creditors and after the termination of the proceedings the remaining balance of the debt is absolved. The trustee is authorized to cancel most of your debts and also sell some of your assets or property to pay off the creditors.
The process of filing the Chapter 7 bankruptcy is also referred as liquidation or straight bankruptcy.
The Time and Cost of Filing Chapter 7 Bankruptcy
The entire process of Chapter 7 bankruptcy usually takes 5-6 months and the total Chapter 7 Bankruptcy Cost is around $335 both for filing and administrative fees and you usually need single trip to the federal courtroom. It is also necessary that you successfully complete the credit counselling with the agency that is approved by Trustee.
Who are Eligible for Filing Chapter 7 Bankruptcy?
- People who have received a bankruptcy discharged in past 6-8 years can’t file for Chapter 7 bankruptcy
- To file Chapter 7 bankruptcy, the applicants must take means test and complete it
Only a professional attorney can make out how to manage the financial sources. Escaping from the credit plans and balance overdue is the main thing to consider for bankruptcy.