Filing Chapter 7
Filing Chapter 7
If you are going to be filing for bankruptcy, you might be, or be forced to be, filing under Chapter 7. If you are a business, this means that the business is going to be ceasing operations and having a Chapter 7 Trustee appointed right away, who will sell all of the assets and distribute the money to the creditors. It might or might not mean that the people who work for you will lose their jobs. Sometimes, when a company is sold off, it is kept intact or partially intact, and business might proceed as usual, simply with a different person in charge.
Chapter 7 can also be filed by an individual. This is going to mean that you can keep certain property that is exempt. However, some liens, such as real estate mortgages, are going to be kept intact. Any assets that are not exempt are going to be sold off by the trustee in order to pay back the creditors. This is going to mean that the other types of unsecured debts that you have will be canceled. Even though most other types of unsecured debt are canceled, there are some that you are still going to have to be responsible for. This includes child support, most taxes, most student loans and any fines or restitutions that you are responsible for regarding any crime you might have committed.
If you file for bankruptcy, you are going to be able to start again because most of your debts will have been canceled. Of course, anything that you have of any value will have been sold, so you are going to have to start over when it comes to that as well. Another disadvantage is that you are going to have a record of the bankruptcy on your credit report for 10 years. It might mean that you aren't able to get loans or other types of credit, but this effect could happen just as easily with high debts.
There are some things that you should consider before filing for Chapter 7. There are some cases in which you can avoid being forced to file on the grounds that it is abusive. You might be able to opt for Chapter 13 instead, which means you can pay off all or some of your debts if you have more time, and if this happens you won't have to have your property and assets sold off.
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... Joint Debtor Case Chapter11 Corporation/Partnership Case (Alt.) Chapter11 Corporation/Partnership Case Chapter12 Individual or Joint Debtor Family Farmer Chapter12 Corporation/Partnership Family Farmer Chapter13 Case Proof Of Claim General Power of Attorney Special Power of Attorney Order and Notice for ...
... creditors you have listed will be sent a notice informing you about the creditors meeting. During this meeting, you will be under oath while the trustee questions you about the information you have provided in your bankruptcy papers. Usually, this meeting does not last more than 10 minutes. The last stage ...
... and one's house. These secured loans are generally the largest debts that most people have; yet filing bankruptcy will not reduce or terminate these debts. If one's debt has not completely caught up with you and ruined one's credit already, he or she may be able to renegotiate these loans with creditors ...
... limits. It is not uncommon for people with high credit limits to try to fix the balance of one credit card by getting another one and making the payments with the new cards and vice versa. This is a dangerous game to play that usually results in multiple credit debts that have to be fixed instead of one. ...
... payments be automatically deducted from the wages and then sent directly to the bankruptcy court which the appointed case trustee instantly distributes to the creditors. The approval of the debtor's reorganization plan also prompts the debtor to immediately start making payments within 30-days of filing ...
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