If you go for Chapter 7 bankruptcy, you may have a lot or all of your debts canceled. On the other hand, you might need to sell some or all of your property to pay back creditors. This type of bankruptcy is called ‘liquidation’ bankruptcy.

The whole process can take about 4 – 6 months to complete and there are some charges involved. Moreover, you must complete a credit counseling course.

If you have been declared bankrupt in the past, usually within 6 – 8 years, you might not be eligible to file for Chapter 7 bankruptcy.

To file for this you’ll need to complete a petition and a number of forms that will describe about your property, current income and living expenses, debts, property you owned and the money you spend in the last 2 years and anything that you’ve sold or given away during that time too.

You are, however, exempt from having to sell certain things. The court can’t make you sell your clothes, household furnishings, and necessities such as things you need for working, e.g. your car and other tools.

At the end of this process your debts will be wiped out. Some debts will not allowed to be wiped out and these include things like child support, taxes, and student loans.

Related Posts
Why buy investment property under an LLC
An LLC or a limited liability company will benefit you in many ways if you decide to buy real estate properties. That's because it will provide plenty of protection in ...
READ MORE
Which terms should be there in your Lease and Rental Agreement
There are terms you need to look out for before you sign a lease or rental agreement. That’s because if you’re not careful enough, chances are, the landlord or landlady ...
READ MORE
Child Abuse
Kid misuse is the actual, sex-related or emotional maltreatment or ignore of kids or kids. In the United States, the Centers for Disease Control and Prevention (CDC) and the Department ...
READ MORE
Alimony Legal Services
When a married couple gets a divorce, a family court judge may order one spouse to make monthly "alimony" or spousal support payments to the other, based either on a ...
READ MORE
DWI: Driving while intoxicated
Operating  or driving a motor vehicle while under the influence of alcohol or drugs that impair your driving skills and perception is a crime in the United States which is ...
READ MORE
Landlord tenant law
Landlord tenant law of a dwelling house or a residential building is governed by tenancy law which applies real estate property law and contracts in leasehold estates. If you are ...
READ MORE
While choosing tenants, avoid Fair Housing Complaints and Lawsuits
There are Federal and State laws that promote antidiscrimination where you as a landlord have certain limitations with the things you should say & do when selecting a tenant. If ...
READ MORE
declaring yourself bankrupt?
When you are neck deep in your debts and there are creditor’s threats looming and lurking around ready to take your assets and leave you with nothing, you may need ...
READ MORE
How to deal with your business debts
Around 90 percent of businesses fail before they even reach ten years. And in this challenging economy, it would be normal if your business would dwindle down to failure. This ...
READ MORE
Why buy investment property under an LLC
Which terms should be there in your lease
Child Abuse
Alimony Legal Services
DWI: Driving while intoxicated
The Examiners: Linking Repeated Chapter 11 Filings Can
Landlord tenant law
While choosing tenants, avoid Fair Housing Complaints and
declaring yourself bankrupt?
How to deal with your business debts