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Chapter 7 Bankruptcy - Leveling The Road Of Debt
By
Matt Murren
In United
States, most of people are found immersed in
the deep vessel of debts and thus, are
forced to lead a stressful life. In such a
situation, Chapter 7 Bankruptcy is
considered as the most beneficial legal
procedure to sail through the rough weather
of debt. Not only does this procedure
relieve the debtor from pending debts, it
also makes him eligible for other financial
benefits. Thus, Chapter 7 Bankruptcy is
designed to provide a fresh start to people
who are unable to carry the burden of debt.
The General Definition
Chapter 7 Bankruptcy is a court-driven
procedure, in which the debtor may seek the
intervention of a trustee to liquidate his
property and distribute the cash thus
generated, amongst the creditors. The
benefit of this legal procedure is that the
debtor is allowed to retain a part of his
property from liquidation.
Following The Procedure
The procedure of Chapter 7 Bankruptcy
consumes four to six months and consists of
following steps:
· Fill the petition form along with other
information like property acquired by the
debtor and also, the debts carried on his
head and the list of creditors.
· Hire a good lawyer for your petition.
· The court restricts the actions from
creditors, as soon as the case begins.
· A trustee is appointed by the court, which
informs the creditors about the petition.
· First meeting of creditors is arranged
that is presided by trustee, who questions
the debtor about various debts.
· Trustee sells the assets possessed by
debtor and the cash generated is distributed
to the creditors.
· A time period of 60 days is fixed for the
creditors and trustee to restrict the debtor
from discharge. During this, debtor is
required to undergo a course of financial
education, failing which the case is closed
prematurely.
· On successful completion of this course,
the debtor is discharged from the debts
carried by him.
What Makes You Eligible For Chapter 7
Bankruptcy
Chapter 7 Bankruptcy is not meant for
everyone and requires some special
eligibility conditions to be fulfilled by
the candidate to avail this powerful tool.
Current monthly income of the person aiming
at Chapter 7 Bankruptcy must be less than or
equal to median income of a family in the
native state of the person.
The person aiming at Chapter 7 Bankruptcy
must possess the enough disposable income to
repay the debts in near future.
The person aiming at Chapter 7 Bankruptcy
must have not been discharged from debts
under Chapter 7 in last eight years.
After you are discharged from your pending
debts, it is like a new world for you. You
automatically become eligible for borrowing
a new loan and also, to open a new bank
account. However, it is worth mentioning
here that Chapter 7 Bankruptcy is mentioned
in your credit report for next ten years.
Thus, you must consult a good lawyer before
actually getting prepared for Chapter 7
Bankruptcy.
Conclusion
Are you one
of the many that suffer from insurmountable
debt and wonder if bankruptcy is an option?
Give us a call at (203) 924-6700 or
contact us.
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