Chapter 7 bankruptcy provides financial relief and a fresh start. This form of bankruptcy involves liquidating nonexempt assets. Your bankruptcy attorney will play a vital role in walking you through the bankruptcy process.
Does It All Go Away?
Chapter 7 bankruptcy provides financial relief within months. An active bankruptcy case may deem an applicant eligible for holding off on paying their bills. If you are experiencing financial stress, your attorney may advise you on filing your bankruptcy paperwork in a timely manner. Each type of bankruptcy will be explained to you by your attorney. The details you are provided with will help you make a sound choice concerning your debts.
If you are receptive to filing for Chapter 7 bankruptcy, your attorney will describe the types of debts that will be covered. Past due rent and mortgage payments and credit card debt are typically covered under bankruptcy. A bankruptcy trustee will be assigned to your case. This person will assess your finances, your assets, and your debts.
Any debts that are not covered by a Chapter 7 bankruptcy are still your responsibility. Any nonexempt assets that you own will be liquidated. The liquidation of the assets will aid with raising the funding that is needed to pay off the debts that are not covered by the bankruptcy.
What Else Will Need To Be Fulfilled?
The jurisdiction that you reside in may require that you take a credit counseling course. The purpose of participating in a course is to help you get a hold of your finances and avoid going into debt again. Before your bankruptcy can be granted, you may need to complete a course. Your attorney can match you with a physical course or an online one. They may advise that you sign up for the course at your earliest convenience.
Upon completing a course, you will be provided with a certificate that signifies your success at completing the credit counseling requirement that is mandated in your state. Your attorney may suggest that you begin budgeting your finances. Budgeting your money on a monthly basis will prepare you for enduring a healthy financial future.
Living within your means will prevent future debt from accumulating. List all of the items you need each month. Assess the amount of income that you have. Be mindful of spending within your means. Avoid making purchases for things that are not considered essential.
For more information, contact a local bankruptcy attorney.
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