The chapter 7 is popularly known as liquidation bankruptcy. This is a legal process. It can provide you a brand new start by dismissing your debts. This type of insolvency erases almost all the debts. In exchange of erasing debts the trustee sells the nonexempt property.
In chapter 7 bankruptcy the trustee dismisses most of the debts. The entire process takes around six months to be completed. Moreover, you are not required to visit the courthouse more than once.
The bankruptcy law is complicated. It takes in-depth knowledge of law to handle such cases. Due to this people are advised to hire lawyers to handle this matter. You need to remember that there is huge paperwork which you need to take care of. If you end up making any mistake, the process will get delayed automatically. For this you can get in touch with The Law Offices of Michael H. Johnson, P.A and seek legal advice related to bankruptcy.
There is an eligibility factor which you need to match up. To find this out your earning, your expenditure and other factors make huge differences. Your yearly income needs to be less than a certain amount or else you cannot be able to file for the bankruptcy. The court reserves the right to dismiss a chapter 7 bankruptcy case, if you have enough income to file for the chapter 13 bankruptcy. Now, only a competent lawyer with specialization and years of experience of handling such cases will be able to provide you better advice. However, to file for chapter 7 bankruptcy, you need to pass a means test.
The purpose of this test is to determine whether your income is enough to pay the required debt. It is important to remember that you cannot file for chapter 7 in case the previous bankruptcy case got dismissed within six months. The reasons for this dismissal will be considered. There are several reasons for which the bankruptcy case can be dismissed. This case can be dismissed due to violation of court order. Filing your case can be fraudulent.
The chapter 7 bankruptcy is considered as an automatic stay. The creditors can go after your wealth and your vehicle if you fail to pay the debt. However, once you have filed the chapter 7 debt, the creditors will be unable to touch your income and your property for the time being. It is important to note that you need to contact a lawyer right after deciding that you want to file for the bankruptcy.
