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
Investing in commercial property: know the pros and cons
A commercial property, just like any other real estate, is a good investment. Examples of commercial properties include office buildings, retail buildings, industrial buildings, warehouses, apartment buildings, and properties that ...
READ MORE
Property tax law
Property tax is a tax on real estate levied by any level of jurisdiction from National government right down to municipal or county level. The amount charged is usually between ...
READ MORE
Affordable Chapter 7 legal services
Chapter 7 bankruptcy is a process of liquidation. In here the non-exempt assets of debtor are sold by the trustee and there are particular norms of the code which needs ...
READ MORE
What works and what does not work in a traffic court?
Did you know that in a traffic court, when the officer who caught you fails to show up during the trial, you will win the case? This may happen if ...
READ MORE
Law and order
Law and order are the two most important aspects for a nation to grow.There are different types of laws.Federal laws apply to everyone whereas State and Local laws apply to people ...
READ MORE
The landlord’s right in evict tenants
Every state in US has the unique Rent Control Acts and this is to be protected in the right manner surely. There should indeed be a valid reason behind everything ...
READ MORE
Pay taxes on time
When April 15 is round the corner, it becomes a really stressful time for the tax payers. Paying of tax is imperative for one and all. Hence there are also ...
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
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
Driving license suspended? how to preventions
Driving privileges can be revoked for reasonable violations. These violations may pertain to driving under the influence or driving while intoxicated that leads to disobedience to simple or complex road ...
READ MORE
Investing in commercial property: know the pros and
Property tax law
Affordable Chapter 7 legal services
What works and what does not work in
Law and order
The landlord’s right in evict tenants
Pay taxes on time
Which terms should be there in your lease
How to deal with your business debts
Driving license suspended? how to preventions