Answering Most Frequently Asked Questions About Chapter 7 Bankruptcy
We all know managing our finances is not an easy task. You can either be successful with it or the other way around. Some of us are keen and disciplined in following the rules and goals we set for ourselves, while some are not. Each of us has had a learning experience in financial management. It can be possible that no matter how organized we are, unexpected and unfortunate events happen. Most times, these are inevitable, while sometimes, it can be a result of our life decision. No matter what the case is, there is still a possible way you can be relieved from the financial burden that handling finances poorly and being under so much debt have caused you.
Individuals and companies have different strategies for asset and liability management. One of the ways that can help you deal with creditors is filing for a Chapter 7 Bankruptcy
What is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy is catered for those who can no longer pay the financial obligations they have from credit card debts, medical bills, and other sources of borrowing or debt. Filing for a Chapter 7 bankruptcy provides you with the possibility of being discharged from most of your debts, and creditors may no longer chase after you and demand payment.
To be able to file for Chapter 7 Bankruptcy, you must first have to qualify and meet the requirements for filing.
What is Chapter 7 Bankruptcy Means Test?
A Chapter 7 Bankruptcy Means Test method will help you determine whether you are qualified to file for Chapter 7 bankruptcy. By taking this means test, you will be able to evaluate your income based on the past 6 months before the filing and your expenses. This will help you identify whether your evaluation results in your eligibility for a Chapter 7 Bankruptcy.
Will I lose something after Chapter 7 Bankruptcy?
There are exempt and non-exempt properties. What you will lose is based on the list of your exempt properties. However, this list covers most of the properties people who qualify for Chapter 7 own originally. Data shows that the trustees take nothing at all in 90% of all Chapter 7 cases.
What is the difference between Chapter 7 and Chapter 13?
There is a great difference between Chapter 7 and Chapter 13 bankruptcy. Chapter 13 is a restructuring of your debt by designing a regular payment plan and presenting it to your creditors in hopes that they may allow you to follow this payment plan instead. Your creditors will still get paid, although not as quickly as the original agreement.
On the other hand, chapter 7 is a liquidation of your assets in payment of a portion of your debts. Some or most of your debts may be deemed as unpayable and may be discharged.
After how many years will Chapter 7 be deleted from my credit report?
It takes 10 years after the filing date to delete Chapter 7 bankruptcy in your credit report
Can I purchase a property or a car with Chapter 7?
Some cases of Chapter 7 Bankruptcy allow you to purchase or apply for a loan to buy a car after you have filed your Chapter 7 case and have received your case number.
What type of lawyer do I need with Chapter 7 bankruptcy?
You need a lawyer experienced on Chapter 7 bankruptcy. Sasser Law Firm has professional Chapter 7 bankruptcy lawyers that can assist you with your case. Visit their website for a free consultation.
