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Chapter 7: Questions About 'Liquidation' Bankruptcy

Chapter 7: Questions About 'Liquidation' Bankruptcy
"If you are contemplating filing for bankruptcy, there is much to learn about the procedure, documents, and eligibility requirements. However, it also depends on which Chapter of bankruptcy you intend to file. Here is a brief summary of Chapter 7 and its potential impact on your lifestyle.

Is Chapter 7 appropriate for me?

Chapter 7 bankruptcy, also known as liquidation, is designed for debtors who lack the means to repay their debts. Their credit card companies are contacting frequently, requesting funds that are simply unavailable. Especially if creditors are threatening to file a lawsuit, escaping their overwhelming debt appears to be the only option. Sometimes it is difficult to make the bare minimum payments on your monthly expenses, and the mountain of debt never seems to diminish. If this sounds like your current situation, Chapter 7 may be the solution.

What steps must I take before I can file?

Before filing, you must have completed a concise consumer credit counseling program within the previous six months. The credit consultant must come from a government-approved organization or agency. You will be subject to a means test, which compares your income to the average for the state. In the event that your debt is lesser, your Chapter 7 petition is likely to be approved.

What happens once I file?

On approval of your case, the judge will impose an automatic stay on your obligations, preventing creditors from contacting you repeatedly. Approximately thirty days later, you will attend the 341 meeting, where you will be questioned by a trustee regarding the facts and circumstances of your case. Creditors are welcome at this meeting and have the right to formally contest any potential discharge of debts that they deem unjust; however, creditors are typically not present and the meeting lasts less than one hour.

May I retain any of my possessions?

This can vary from state to state, so it is important to investigate with your attorney before filing your petition. In all U.S. states, however, you are permitted to retain a number of assets so long as the sale of others pays off all of your debts.""

" - https://www.affordablecebu.com/

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"Chapter 7: Questions About 'Liquidation' Bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 83 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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