The Bankruptcy Code contains two chapters that provide a protective shield for debtors: Chapters 7 and 13. Every chapter has a unique set of requirements. The debtor who petitions for Chapter 7 bankruptcy must comply with certain cash flow requirements. The law specifies that he must earn less than the median income of a spouse and offspring of the same size in the state.
If his salary exceeds this median financial flow, he may qualify based on certain criteria. Given that this chapter includes asset liquidation, the bankruptcy petitioner should seek legal advice from a professional who can assess his financial situation and recommend the best course of action.
As soon as a case is filed, the Bankruptcy Laws and regulations also suspend the creditors' rights to pressurize or harass the debtor for repayment. The court makes the ultimate determination regarding the status of your debts and which must be paid back and which can be completely discharged. The most recent bankruptcy laws stipulate that non-exempt property may be liquidated by the bank or mortgage loan company in order to pay back the loan companies in full.
This accentuates the significance of expert intervention, as filing for Chapter 7 bankruptcy without the proper knowledge can result in the liquidation of the debtor's assets. If retained, a certified bankruptcy attorney can provide advice to the debtor and submit his case under Chapter 13, which provides him with additional time to repay back the debts.
If he has a daily income, he can repay the funds through a periodic payment plan using his income. This may immediately enable him to obtain an automatic stay on potential adverse events, such as foreclosure or repossession.
The most recent bankruptcy regulations have been in effect since 2005. Due to their youth, it is difficult for the average person to comprehend them thoroughly. Here, the role of a professional attorney becomes crucial, as he is up-to-date on all recent developments and can guide you effectively with your best interests in mind.""
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