This option is not available to everyone, but if you have a low income and a substantial amount of unsecured obligations, this could work for you. You must first pass a test to determine whether your current income is low enough to qualify. Your income will be compared to the state average, and if it is slightly higher, your additional income will be compared to your unsecured obligations.
If you fail this eligibility test, you can likely file chapter 13 bankruptcy instead, but if you pass, it is time to contact a chapter 7 bankruptcy lawyer.
You should be aware that this form is the most common and is commonly known as liquidation. Therefore, if you own a business, this category is probably not for you. However, if you have little income and little to lose, it may be the best option for you. Once your chapter 7 bankruptcy attorney initiates the process, your debts can be discharged in a matter of months.
The majority of your assets will be sold by a trustee, who will then use the proceeds to repay your creditors. This means that while you will not be able to retain the majority of your assets, you will not be required to make payments to your creditors. In some instances, it is possible to retain certain property and continue paying for a car or residence. Consult your attorney first to determine the specifics.
Now that you understand how this process works, it is time to begin so that you can discharge your debts as quickly as feasible. Finding an attorney who specializes in this form of bankruptcy is the initial step. Once this is resolved, you should be able to rest easy knowing creditors won't be calling you every day.
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