For those that qualify sometimes filing for chapter 7 bankruptcy is the only option. This is considered a fresh start by the Federal government. For any person who is considering filing for this type of bankruptcy they should first familiarize themselves with the process. Once a person is familiarized with the process and requirements they will then have a clearer understanding of what chapter 7 bankruptcy is and if that is a viable solution for them or not.
Chapter 7 Bankruptcy Defined
When a person files for chapter 7 bankruptcy, all or most of a person’s debts are cancelled. At the same time, all or most of a person’s assets are liquidated and sold in order to pay off as much to the creditors as possible. Many people refer to this type of bankruptcy as a fresh start type of bankruptcy. Once everything is sold, an agreement for a payment amount is made with the creditors. At this point, the debts will be considered settled, and any income a person makes from there is no longer at risk to any creditors. One thing worth noting is that a person cannot seek out chapter 7 bankruptcy protection if they have declared bankruptcy before in the last 6 to 8 years.
Filing for Chapter 7 Bankruptcy
Most people seek out the help of a chapter 7 bankruptcy lawyer Fairfax, VA when it comes to filing for chapter 7 bankruptcy. They are knowledgeable of the process and can help a person get through the process as quickly and efficiently as possible. A person can also file for chapter 7 bankruptcy on their own. The upside for a person filing on their own is of course less costs. The downside is the process can get a little complicated and a person may be at risk of being denied bankruptcy protection if there are any errors or omissions during the bankruptcy filing process.
Items Needed for Chapter 7 Bankruptcy Filing
There are quite a few things that are needed for chapter 7 bankruptcy filing. A chapter 7 bankruptcy lawyer in Fairfax, VA can help a person make sure they have all of the information that is needed. The basics are a person needs to have a list of all properties and locations of properties, all current income and monthly living expenses, and a list of all debts that are currently owed to creditors. There are also some assets which are exempt from liquidation, but these have to be stated in order to keep the properties.
Sometimes the only alternative is chapter 7 bankruptcy. It offers a great way for a fresh start. Once completed a person can work on getting their life back together.