Chapter 7Learn More About Bankruptcy Law
Chapter 7 bankruptcy or otherwise known as “liquidation bankruptcy” is where a debtor files a bankruptcy petition with the bankruptcy court and a trustee may sell some of your property to repay your debt to the creditors. Although in most bankruptcies, debtors do not have assets which could be sold to repay creditors or the assets they do possess, are exempt from being sold to repay creditors. Anybody can file for bankruptcy themselves, but it takes an experienced bankruptcy attorney to obtain the best results and to retain as much or all of your property through the use of proper bankruptcy exemptions.
The entire chapter 7 bankruptcy process usually only takes between 4 to 6 months from the date of filing, until you receive your bankruptcy discharge. The cost associated with chapter 7 bankruptcy are a $335 filing fee, obtaining your credit report, taking two credit counseling classes and usually only requires one trip to the courthouse. Debtors who have filed bankruptcy and received a discharge within the last 6 to 8 years, will not be able to file for bankruptcy. Furthermore other factors such as income, expenses and debt burden can determine if you are eligible to file chapter 7 bankruptcy or if you must complete a chapter 13 repayment plan.