.Chapter 7 Bankruptcy
Chapter 7 Liquidation
Chapter 7 bankruptcy or "straight bankruptcy" is the most popular form of bankruptcy because it allows the debtor to "wipe the slate clean" and start all over. This code is available to individuals, couples, corporations and partnerships. Discharge normally occurs within 4-6 months after filing.
Non-exempt assets will go under the care of a trustee who
liquidates them to satisfy creditors in order of their secured interests. Any wages a
debtor earns is off limits to creditors who had a vested interest on the date of filing.
This code is generally used by those who lack sufficient income to
cover outstanding debts after taking care of basic necessities, and who have no hope of
ever repaying their creditors. There are certain obligations that are not
dischargeable, for example:
Alimony and child support
Back taxes under 3 years old and student loans
Recently made purchases for substantial amounts
Property executed contracts involving titles or liens
Before considering chapter 7 you should take an inventory of the
types of debt owed. This will give you a better idea if filing will give you the relief
you seek.
Who should consider chapter 7.
* If there are no cosigners involved,
* If court action by creditors is imminent, filing stays all
collection proceeding while in court.
Downsides
Alternatives
* If there is no hope of repaying any of your debts.
Ruins your credit. If you have a cosigner, they will still be responsible for the debt
you discharge. Pay attorneys, court and filing fees upfront.
If you can't discharge enough of your debts or have to sacrifice too much property you
may want to consider chapter 13 or a credit counseling / debt consolidation repayment
plan.
This information is presented to you by the Bank Fraud
Victim Center.
Our mission is to educate homeowners about predatory lending practices, bank fraud and the legal options available to them.
We believe that if you don't know your rights, you don’t know your options. website:
http://mortgage-home-loan-bank-fraud.com
Find out if you are a victim of
predatory lending practices:
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