How precisely does Chapter 7 function? Once you begin the filing procedure, a trustee will be assigned to you who will cancel the majority of your debts and liquidate the majority of your assets in order to pay back your creditors. Frequently, some of your property, such as your home or vehicle, will not be liquidable. The procedure may take up to six months. Filing requires a relatively small filing fee, which necessitates a journey to the courthouse.
How do you determine your eligibility? Those who have filed within the past few years are prohibited to do so again. Also, if it is determined that you could pay off your debts and expenses with your current income, you may be able to file for Chapter 13, which would allow you to keep your possessions and avoid liquidation, but would designate you a manageable payment plan to repay your debts. Your Chapter 7 bankruptcy attorney will assist you in determining your eligibility.
After the meeting with your creditors and completion of other procedures, your trustee will determine which of your assets are nonexempt. You may be required to liquidate certain assets in exchange for cash that will be applied to your debts to creditors. The exempt property differs from state to state and is dependent on your income level. Following the completion of the procedure, your debts will be completely eliminated. However, certain debts cannot be eliminated under any circumstances. These debts consist primarily of taxes, child support, and alimony.
Consult with a Chapter 7 bankruptcy attorney to learn more about the filing process, your eligibility, and whether or not you should file. This will give you a clearer idea of how to proceed. This process is not for everyone, but for some it can provide a fresh financial start and a second opportunity at a prosperous future.""
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