Chapter 7, which is commonly known as liquidation bankruptcy, is the most common kind of bankruptcy in the United States. In this kind of bankruptcy, a trustee forgives many — if not all — of a debtor’s debts. The trustee also sells off a debtor’s non-exempt assets, and turns the proceeds over to the creditors, hence its alternative name of liquidation bankruptcy.
Before filing, it’s important to obtain the right Chapter 7 bankruptcy information, lest you risk making a costly mistake. For example, perhaps you misfiled a form exempting your car from repossession, and then a week later the trustee comes and takes it away. Perhaps you might also not even realize that some debts you thought couldn’t be forgiven can be in actuality.
It’d be beneficial to you to hire a bankruptcy attorney before filing, as he or she has all of the Chapter 7 bankruptcy information and experience you’ll need to get through the process. These professionals will help you fill out the petitions and forms that ask for such pieces of Chapter 7 bankruptcy information as descriptions of your debt, current income, monthly living expenses, property, and what property you hope to claim as exempt.
Many people naturally worry that they don’t have enough money to pay their debts as is, so how could they afford the services of an expensive lawyer? Firstly, many bankruptcy lawyers offer payment plans, and other modes of payment beneficial to debtors. Secondly, it might be more a question of whether you can afford to file all of the Chapter 7 bankruptcy information on your own, accurately and on-time, without making any mistakes.
After learning this Chapter 7 bankruptcy information, many people think that it’s the end of the road for their financial lives. In reality, it’s the start of a new one! Although bankruptcy does spoil a person’s credit for a few years, it offers debtors the chance to start over again, and save their homes, their cars, and their important property. If you have a question about any kind of bankruptcy, feel free to ask in the comments.