If you choose to file a Chapter 7 bankruptcy, you basically wipe away your debts. As a result, this type of bankruptcy is a liquidation bankruptcy – an action where a trustee is appointed to gather all your assets and sell any of the items that are not exempt. In turn, the trustee pays you any exempted amount. The net proceeds of the bankruptcy liquidation are directed to your creditors.
The Chapter 7 Process
When you work with a personal bankruptcy attorneys in Wayne NJ, a Chapter 7 bankruptcy process is easier to understand and facilitate. An attorney will outline which debts can be eliminated and which obligations cannot be discharged. For example, debts that cannot discharged include student loans, certain taxes, child support, or alimony. In addition, any debts acquired through fraudulent means must be paid as well.
You will need a personal bankruptcy attorney for a Chapter 7 filing in order to keep some of your secured debts, such as your home, furnishings, or automobiles. In order to reaffirm the debts, you need to sign, of your own volition, a reaffirmation agreement. When you sign this agreement, you cannot wipe out the debt for eight years. You still owe the obligation and must continue to make payments on the car, house, or furnishings you choose to keep.
Are You Qualified to File Chapter 7?
If you talk to a personal bankruptcy attorney, he or she will tell your that a Chapter 7 filing is often recommended for people who are not making a substantial income and have a good deal of debt that is dischargeable. Naturally, you can better outline a financial solution in this respect when you contact an attorney who is well-versed in bankruptcy law.
In Indiana, you need to contact a firm like Law Offices of Larry Goodman. By reviewing your current financial situation, you can, again, obtain a fresh start financially. While bankruptcy has some negative connotations attached to it, it also offers a viable way for you to manage your future funds with greater insight and care. Look into your options by speaking to an attorney today.