A Chapter 7 bankruptcy is the most commonly filed bankruptcy in the United States. A Chapter 7 bankruptcy allows the debtor the opportunity stop a home foreclosure, stop collection actions against them and obtain a fresh start. The Means Test The means test is a test under the Bankruptcy Code which determines who qualifies to file a Chapter 7 … [Read more...]
The Chapter 7 Bankruptcy
How It Works The first step in a Chapter 7 bankruptcy is the debtor files a bankruptcy petition. In addition the debtor must file schedules of assets and liabilities; schedules involving monthly income and expenditures made by the debtor; a statement of financial affairs pursuant to the bankruptcy code and a schedule of unexpired contracts and … [Read more...]
Filing Bankruptcy
Many clients come to me who have tried to file bankruptcy on their own. The usual result of a client filing bankruptcy is that the bankruptcy gets dismissed. To start with, there is a prerequisite to filing a bankruptcy. The prerequisite is that an individual seeking to file bankruptcy must take a credit counseling course. If the individual … [Read more...]
Chapter 7 Bankruptcy Eliminates Credit Card Debt
The filing of a Chapter 7 bankruptcy will usually eliminate all of a debtor’s credit card debt. In addition, it also eliminates other non-secured debts such as personal loans, debts to doctors, hospitals and other individuals and banks. The Bankruptcy Case The filing of a Chapter 7 bankruptcy requires the submission of a Bankruptcy Petition, … [Read more...]
Bankruptcy Explained
CHAPTER 7 BANKRUPTCY There are basically two types of bankruptcies for individuals or married couples can file. These two types of bankruptcies are referred to as Chapter 7 bankruptcy and a Chapter 13 bankruptcy. A chapter 7 bankruptcy is a liquidation. Non-exempt assets are liquidated and if there are any assets over and beyond the bankruptcy … [Read more...]