Are You Wondering What Is The Chapter 7 Process? Learn More About It Below

by | Feb 24, 2015 | Law Services

Many people find filing for Chapter 7 bankruptcy the most effective way of coming out of their debts. However, most of them do not fully understand what steps they should follow when filing under this chapter. So, if you are seeking an answer to the question: What is the Chapter 7 Process? Below are the steps you should follow to make your filing process effective:

     *     Take the time to analyse your debt: It is important to know that some debts are chargeable in Chapter 7 while others like child support obligations are not. Many people pledge a collateral when taking debts, not knowing that the creditor will take the property once they do not pay their debt on time.

     *    Determine the exemptions of your property: Many states across the world have different exemption laws that determine the properties you should have to qualify for the Chapter 7 filing. The exemption laws outline the amount of equity that different types of properties should have for the owner to be able to file for Chapter 7 bankruptcy. Knowing these exemptions is part of learning and getting the answer to the question: What is the Chapter 7 Process?

     *    Be sure about your eligibility: Your income can easily disqualify you from filing for this bankruptcy act. Most states require that your income six months before you file for Chapter 7 bankruptcy should not exceed the median income that families of your size should have for you to qualify.

     *    Reaffirm or redeem the secured debts: If the collateral you gave was in form of a property, you should pay some money to the creditor to maintain ownership of that property. The creditor will ask you whether you want to reaffirm, redeem or surrender the property before you file for the Chapter 7, thus the need to know What is the Chapter 7 Process?

     *    Fill and fill out the bankruptcy forms: You will fill the pages in the bankruptcy form to give the court more details about your properties, expenses, income and debts. The court will also expect you to name all your creditors and outline the properties you want to claim as exempt. You will then file the bankruptcy forms before fourteen days are over.

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