All Bankruptcy Information

Chapter 7 Bankruptcy is one of the options when you are going to file bankruptcy. Chapter 7 bankruptcy is a common form of bankruptcy for individuals. It is commonly referred to as the “Liquidation” bankruptcy as often times the court will liquidate or sell some of your assets so that your creditors can earn some of the money that you owe them back. What chapter 7 does is basically discharges all of the debt that you own and removes any of the liability that you might have with those debts.

Cost of Chapter 7 Bankruptcy

The customary cost to file for a chapter 7 bankruptcy is usually around $299 to file and will take anywhere from 4-6 months to have it go through its process. The benefit of the chapter 7 bankruptcy is usually that you will only have to make 1 trip to the courthouse.

Who is eligible for Chapter 7 Bankruptcy?

If you have already gone through a previous bankruptcy within the last 8 years you will not be eligible for another bankruptcy. There is also the possibility that they will recommend you file a chapter 13 bankruptcy to setup a payment plan if you do earn enough money to repay what you owe. If you can’t repay your debts, even if it is over an extended period of time than most likely the choice will end up with the chapter 7 bankruptcy.

How to File Chapter 7 Bankruptcy?

In order to get your proceedings started correctly you will have to go to the local bankruptcy court in your area and get the proper forms to fill out. The forms will basically request information regarding your assets, how much money you make, your monthly living expenses, and other property that you might own or have sold recently.

If you are married you also have the option to file jointly, separately, individually or just one of you. One thing to note is that even though only one of you might be filing for bankruptcy, information will need to be collected from them regardless.

As with any form of bankruptcy it would be a wise decision to consult legal counsel prior to filling anything. There are special circumstances that may make you eligible or ineligible that you might need to know about. Bankruptcy laws change all the time so you will need to discuss these changes with someone who knows.

You will end up having to pay some extra money when you consult a bankruptcy lawyer, but you will end up paying even more if you end up filing incorrectly or missing out on a possible advantage towards helping protect yourself better. This value is more than worth it as you will end up possibly keeping more items than you would have originally had you done it all yourself.

It is also a wise decision to research all of your options before consulting a lawyer as well so that you are ready to ask them the appropriate questions.