Filing chapter 7 bankruptcy, allows cancelling most of the debts or all the debts.
Chapter 7 bankruptcy cancels all or many of your debts. At the same time, it can also sell or liquidate some of the property you own to pay the creditors. Chapter 7 is also called as liquidation bankruptcy. The entire process takes about 4 to 6 months. There is a cost involved in filing the case, some administrative fees are taken and it needs only one trip to be made to the court house. In order to file this process, you should complete credit counselling with an agency that is approved by US trustee. You will not be able to file this bankruptcy if you have received a bankruptcy discharge in the last 6 to 8 years.
What are the eligibility criteriafor filing chapter 7?
To file chapter 7 bankruptcy, the individual should be eligible and the rules can vary depending on the case to be filed. First and foremost thing is the expenses and the incomes are examined to see if they are standard. For example, if the earning of a family is less than the median income then he is eligible to file this bankruptcy process. If the earning is more, chapter 13 is the option, where he pays part of the debt over time with the disposable income. Eligibility for this process also includes compulsory credit counselling & budget analysis. This addresses and testing calculations of the individual are some such factors. Bankruptcy attorney is the best resource to help in filing chapter 7.
Who should file for chapter 7?
This section explains who should file for chapter 7 bankruptcy. When the individual has more credit card & medical debt, he should file for this process. Bankruptcy is designed to eliminate completely all unsecured debts like medical bills and credit card bills. Secondly, the individual is receiving collection calls & notices. Bill collectors do not easily just go away. In fact, as the debt gets older, they sometimes get aggressive in their collection efforts. Once chapter 7 has been filed, collectors are prohibited from contacting the individual. Thirdly, these protections can vary according to state. Generally, chapter 7 offers less protection of your property compared to chapter 13. However, chapter 7 exemptions allows you to keep your car, home and other valuable items like furniture, work tools, appliance, clothes and many more. Lastly, the individual does not have enough income to pay the bills. To quality for chapter 7, the individual should pass the means test. In San Antonio, there are many professional lawyers who can help the individual with the test which looks at the income & debts to determine true need.
Author Resources:-
This article is written by Gracie Calaway.With the experience she felt the need to educate the people about legal matters, what better could she find than writings. She puts in regular information about DWI lawyer in San Antonio.
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