Chapter 7 Bankruptcy And What You Should Know About It

Life does not always turn out as planned and the economic crisis that struck in 2008 still affects millions of people out there. If you are like them, you are probably still struggling with finances and you probably still find it difficult to make ends meet if you have a lot of debt you have to shoulder. In this case, you should know already that you can choose to file for bankruptcy and make your life a bit easier through it. There are six types of bankruptcy out there and Chapter 7 bankruptcy may be the best choice for you.

This type of bankruptcy is basically consisted out of the liquidation of the non-exempt assets the debtors has. The court will decide how much you should give back and a trustee will make sure that happens (as he/she will act as an intermediary between your assets and the creditors to whom you owe money). In this case, you will be allowed to keep some non-exempt assets (which may include your home, your car and the basic furniture and appliances in the home). Furthermore, the advantage of Chapter 7 bankruptcy is mainly based on the fact that the amount of debt you have can be lowered under the court order as long as you meet some basic criteria (such as not having broken laws related to declaring your income or having to pay special types of debts that include child support, student loans, taxes, and so on).

Chapter 7 bankruptcy is probably the fastest and the easiest type of bankruptcy out there and it can be filed both by individuals and by businesses as well. In the latter case, the business will be shut down with the exception in which the trustee will continue to run it. Furthermore, corporations are dissolved as entities and they do not receive bankruptcy discharge.

The best way to make sure that your filing for bankruptcy will bring you as many benefits as possible is by hiring a bankruptcy attorney. He/she will make sure that you will be taken into consideration for a Chapter 7 bankruptcy. Also, do bear in mind that there is a very high chance that only a bankruptcy attorney will be able to know exactly the laws in your state and how your situation may be improved. Furthermore, he/she will fight for your rights and he/she will try to work towards the best settlement possible for you.