How to Go About Filing Chapter Seven Bankruptcy
We have all heard of chapter 7 bankruptcy, although many of us if asked probably could not give a precise answer to what exactly it entails. Sadly many folks make dreadful errors in their bankruptcy filing because of this lack of explanation. Having to go through the proceedings necessary in bankruptcy is the last thing people want to do. Naturally the idea of being in a situation where your debts are worth more than what you earn is not very popular, but neither the less if you find yourself in this predicament, making sure you understand the process of Filing For Chapter 7 Bankruptcy is one hundred percent required.
There isn’t just one kind of bankruptcy proceeding, in fact there are a number including chapter 7 (the focus of this article) and Chapter 11. In this article our focus is going to be on chapter 7 since this is more for individuals.
Defining chapter 7 bankruptcy for all: According to the law and the United States court system, Chapter 7 bankruptcy refers to liquidation of assets that are not legally exempt from liquidation in order to pay off creditors and debtors.
Businesses/partnerships/corporations and individuals can apply for a chapter 7 bankruptcy. There is, however, a special clause open to the individual within the framework of this chapter filing that is not available to the other entities. That special clause is known as a “discharge”. What it basically means is that the public are able to free themselves totally from some of their debts.
Filing Chapter 7 Bankruptcy
when one needs to file for chapter 7 bankruptcy some of the things you will need are the following: proof of your full income as well as expenditures, proof of your existing liabilities and assets, statements for your financial affairs, copies of any expired executive contracts, and of course copies all your tax returns.
For the public there are a series of additional items that are necessary. As an individual you can expect to have to supply: copies of statements of income and or employee payments, credit counseling reports etc, also students will need to supply documentation for interest payments on student loans. The information in this document is very brief and general, if you need to find out more about chapter 7 bankruptcy and others, a good place to start would be with the links in this article and also with the US courts website. Also make sure that if you do need to take action in the way of a bankruptcy proceeding you get a good professional lawyer to deal with your case.
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Filed under: Finance