15
Jul
What Is Chapter 7 Bankruptcy?
Most people are familiar w/ the word bankruptcy, but many do not fathom much about Chapter 7 bankruptcy. This article deals w/ sum of the too many common issues associated w/ that particular form of bankruptcy.
First of all, Chapter 7 is the most commonly used filing when it comes to bankruptcy. It is sometimes known while liquidation bankruptcy.
There can become sum exceptions but almost always Chapter 7 is used from individuals and not from business corporations, small companies or partnerships inside business. When used from businesses, Chapter 7 ordinarily results inside the termination of the business entity and so that form of bankruptcy is usually not used from those entities. Another side note to that is that the complete discharge of debt under Chapter 7 is only available to individual debtors.
Chapter 7 is a liquidation (selling) process inside which the non-exempt property that is owned from the person filing is liquidated (sold) 4 distribution to the creditors. The debtor then receives a discharge of all dischargeable debts.
Generally speaking, those who file 4 Chapter 7 are inside very bad financial conditions, usually w/ large credit card and other secured and unsecured debt. For the most part, these individuals do not own many assets which can become sold off which means that they have less to lose than sum other too many affluent individuals. Normally, these people are able to completely eliminate, most or all of their debts.
To become eligible to file 4 chapter 7 you must not have been granted a Chapter 7 discharge within the last six years or have completed a Chapter 13. You must not have had a bankruptcy filing dismissed 4 cause within the last six months. There are, of course, many other requirements, far too many to become listed inside that article, but these are the most commonly asked about requirements 4 filing under Chapter 7.
After your bankruptcy is filed, the court will mail a written notice to all the creditors listed inside your schedules. Once a creditor or collector does have been notified of your filing they must stop all efforts to collect the debt. This is 1 of the benefits of filing 4 bankruptcy and can help stop harassment.
Consumers should understand that they may still become responsible 4 certain debts even after filing 4 Chapter 7. The following debts are usually not forgiven or discharged: taxes that are owed to state and Federal governments, alimony and child support, those debts that came about because of willful misconduct, liability 4 injury or death from driving while intoxicated; non-dischargeable debts from a prior bankruptcy, most types of student loans, and those debts that came about through fraud or criminal activities that the person engaged inside.
Anyone considering filing 4 bankruptcy should first seek advice from a bankruptcy attorney. The guy or that girl can help you make the supreme decisions concerning which chapter you should file. They can also offer you guidance on the new bankruptcy laws that are now inside effect.
Consumers who are close to bankruptcy should also ask 4 advice from their local advice center inside order to have their finances inside sum sort of order.
About the Author
Peter Kenny is a writer 4 The Thrifty Scot, please visit everybody @ http://www.thriftyscot.co.uk/Loans/ Loans and http://www.thriftyscot.co.uk/mortgage/ Mortgages Visit http://www.thriftyscot.co.uk/news/012008/consumers-showing-more-consideration-when-choosing-credit-cards.html Consumers http://www.thriftyscot.co.uk/news/012008/consumers-showing-more-consideration-when-choosing-credit-cards.html showing too many consideration when choosing credit cards
Tags: business corporations, business entity, chapter 7 bankruptcy, dischargeable debts, liquidation, unsecured debt