Theme: Chapter 7 Bankruptcy
January 30, 2010Referred to as ‘straight bankruptcy’ is a situation where the debtor hands over all their surviving property to a bankruptcy trustee is the chapter 7 bankruptcy. It is converted in to cash by the trustee in order to allocate amongst the creditors. a release of all dischargeable will make the debts within approximately four months. Since they have lost it all, many people who claim Chapter 7 bankruptcy will not receicne a large sum of money . This will mean a new beginning for the bankruptcy party is required.
The debtor in order to be able to receive Chapter 7 bankruptcy, must be an individual, partnership of corporation or any other business unit. Under Chapter 7 bankruptcy information, a sole individual cannot claim. An exception is made only if the debtor receives credit counseling from an approved agency within 180 days before filing for chapter 7 bankruptcy. A chapter 7 bankruptcy is only issued after the debtor fills out a petition with the bankruptcy court regarding their assets. In addition to this the debtor must also file a schedule of assets and liabilities, a schedule of current income and expenditures and a statement of financial affairs with the court .
Ah honest individual should be given a new beginning is the concept behind bankruptcy. Therefore the debtor is not legally responsible for discharged debts. As opposed to the previous mentioned case under the chapter 7 bankruptcy it is only an option for individual debtors. Since some categories of debts are not discharged , an individual’s right of discharge is not to be taken fro granted.
In order to file for a chapter 7 bankruptcy it is essential that you first speak with a qualified attorney and figure out what the best choice for you is. The need of filing a bankruptcy should be finalized before anything. Online evaluation forms are also available. Complete and correct information in the attorney is essential for any future issues. The recept of all the debts for the debtor should also be made in chapter 7 bankruptcy. Although in some instances, one might lose his all assets, in other cases it might not be the case. Therefore it is essential that you have a bankruptcy attorney before making any rash decisions.