Chapter 7 bankruptcy information is good to know, especially if you are considering bankruptcy for your business. Or, if you are planning to file chapter 7, you should understand the basics.
Also called straight bankruptcy, chapter 7 is about the liquidation proceeding. It involves the debtor who is expected to turn over all non-exempted properties to the bankruptcy trustee, who will convert them to cash for debt payment to all creditors.
After its accomplishment, the debtor receives a notice of discharge of all dischargeable debts, within four months. In most cases, if the debtor does not have assets to lose, chapter 7 provides the debtor a "fresh start".
The chapter 7 bankruptcy information is all about giving a debtor a fresh start by …show more content…
If you can prove that it is, then you can file Chapter 7.
The second step is about not having a below-median income for your State. According to the bankruptcy law, you can still file for chapter 7 provided that your lawyer can make the calculation. He is also well-versed on the allowed expenses that can be used in the calculation.
The State Median Income is determined by your family size and the number of persons earning income within your family. The income varies per State. Check out with your local government to know about yours. You can also use the internet to download such information.
Knowing about bankruptcy law will also make you understand that you have to take an approved Credit Counseling Course within six months before you file chapter 7. There are few ways to do this.
You can ask your bankruptcy lawyer to help you sign up for the course. The internet is also an excellent source of information on accredited credit counselors. In some cases, such courses can be taken through the
Also called straight bankruptcy, chapter 7 is about the liquidation proceeding. It involves the debtor who is expected to turn over all non-exempted properties to the bankruptcy trustee, who will convert them to cash for debt payment to all creditors.
After its accomplishment, the debtor receives a notice of discharge of all dischargeable debts, within four months. In most cases, if the debtor does not have assets to lose, chapter 7 provides the debtor a "fresh start".
The chapter 7 bankruptcy information is all about giving a debtor a fresh start by …show more content…
If you can prove that it is, then you can file Chapter 7.
The second step is about not having a below-median income for your State. According to the bankruptcy law, you can still file for chapter 7 provided that your lawyer can make the calculation. He is also well-versed on the allowed expenses that can be used in the calculation.
The State Median Income is determined by your family size and the number of persons earning income within your family. The income varies per State. Check out with your local government to know about yours. You can also use the internet to download such information.
Knowing about bankruptcy law will also make you understand that you have to take an approved Credit Counseling Course within six months before you file chapter 7. There are few ways to do this.
You can ask your bankruptcy lawyer to help you sign up for the course. The internet is also an excellent source of information on accredited credit counselors. In some cases, such courses can be taken through the