Chapter 7 Bankruptcy: Get to Know the Process of Filing this Chapter

If you are in a situation in which you think going bankrupt would be the best answer, it is time to find a good lawyer to look over your options. One of the common routes to take is filing chapter 7. Before you go this route, you need to find out more about the plan and whether you can even file this type, which chapter 7 bankruptcy attorneys should be able to tell you.

Not everyone is eligible for this pathway, but if you have little income and a lot of unsecured debts, this could work for you. You will first need to take a test to make sure your current income is low enough to qualify. Your income will be first compared to the average of your state, and if yours is a bit higher, you will also have your extra income compared to your unsecured debts.

If you do not pass this eligibility test, you can likely file chapter 13 instead, but if you do pass, it is time to get in touch with a chapter 7 bankruptcy attorney.

You should know that this form is the most common type, and is often referred to as liquidation. Therefore, if you own a business, you are probably not interested in this category, but if you have little income and not much to lose, it might be the best pathway for you. Once your chapter 7 bankruptcy attorney gets the ball rolling on the process, your debts can be discharged within a few short months.

The way it works is that a trustee will sell the majority of your assets, and then use the profit from the sale to pay off certain creditors that you owe. This means that while you will not get to keep most of your assets, you will also not be forced to make payments to creditors that you owe. In some cases, you can keep certain property, and even continue paying for a car or home. Just talk to your attorney first to work out the details.

Now that you have an idea of how this process works, it is time to get started so that you can discharge your debts as soon as possible. The first step is to find a lawyer that specializes in this type of bankruptcy. You should then be able to get some peace of mind knowing that creditors will not be calling you daily anymore once you get this taken care of.