ABCs Of Chapter 7 Bankruptcy

Chapter 7 is basically a bankruptcy case, that is filed with the aim of emerging out of a financial crisis. Such a case is generally filed by a person who has accumulated huge loans in his/her name. If you too wish to start afresh out of a financial crisis, Chapter 7 bankruptcy will provide you the fastest and easiest solutions.

What happens in such a case?

In a Chapter 7 bankruptcy case, the non-exempt property of the debtor is sold in  public auction. The sale is done in presence of a court-appointed trustee. The proceeds from the sale is used to pay off the debts. If any debt still remains unpaid after such a sale, the court dismisses it. In case, after paying the debts, a part of the money (obtained from the sale) is left out, it is returned to the debtor. There are no restrictions on the ways in which the money can be used. If you file for a Chapter 7 bankruptcy or a liquidation case, you should make it a point to discuss your eligibility for filing insolvency under the Chapter 7 of the bankruptcy law.

Are you eligible?

In case you have no assets to lose, you should file for insolvency under such a Chapter. Remember, when there are no important assets to lose, relief can be achieved relatively faster than through any other ways. You should however take help from an experienced attorney if you wish to get your debts discharged within months. Generally, if you are into business, you might not be a suitable candidate for such an insolvency case. Discuss about your eligibility for filing Chapter 7 bankruptcy with an experienced lawyer. Such an attorney will be able to asses your financial condition and various other aspects before suggesting you the right form of insolvency you should file for. If you have a regular income, probably filing a case under Chapter 13 will be the right solution for you. Let an experienced lawyer decide on the type of case you should file for.

Is it important to hire a lawyer?

It is very important to hire the services of a competent bankruptcy attorney for filing a case under the Chapter 7. Remember, Chapter 7 Bankruptcy cases are complex, and if not handled by an experienced professionals, the verdict might even turn against you! Hiring an experienced professional will also make the proceedings faster and easier. Nevertheless, representations from an experienced lawyer also ensures peace of mind and rightful filing.

So, are you searching for lawyers who are experienced in handling cases related to Chapter 7 bankruptcy? Washington DC is reputed for having a few of the best legal firms in the country.