With all the different types of bankruptcy out there you are probably wondering what chapter 7 bankruptcy is. First of all, chapter 7 bankruptcy is the most popular form of bankruptcy; this is for many reasons. Chapter 7 bankruptcy is for businesses and individuals and a trustee will be appointed immediately to liquidate your assets and distribute payment to creditors.
Debt that will not be exempt includes, but is not limited to, child support, fines accrued through crime, student loans and taxes. You will have to attend credit counseling services within 180 before filing for bankruptcy and pass a means test. A means test is basically to prove that you are not trying to abuse the system. Also, if you are below your state’s median income you are exempt from the test. Chapter 7 bankruptcy will typically allow you to keep your home and roughly $21,000 of personal property however, when it comes down to the liens against the property it gets a little tricky. In general, chapter 7 bankruptcy will take care of your mortgage, car loan, accounts already in collections, credit cards and medical bills. This can be a huge relief to those who are swimming in debt that cannot be paid on their own.
Aside from all of this filing for bankruptcy can be an excruciatingly meticulous process and the smallest mistakes can disallow debts to be discharged and even make it impossible for you to file. When in a financial crisis it is important that mistakes are not made; especially when you don’t have the resources to deal with complications. When filing for bankruptcy it is highly advised that professional help and/or an attorney is sought out to handle bankruptcy and answer all of your questions. If you are planning on filing for chapter 7 bankruptcy then contact Universal Finance they a reliable source that is there to help you with all of your bankruptcy needs.
