Getting Back On Your Feet With Chapter 7
Chapter 7 is one type of bankruptcy available to individuals. It is much faster to resolve than Chapter 13 bankruptcy, but cannot always be used by individuals who are able to pay back some of their debts using personal income. Chapter 7 bankruptcy attempts to repay debt by selling off some of a person’s property (with several exemptions, such as a family car and some personal belongings). Chapter 7 is also called “liquidation”, or a “straight bankruptcy”.
How Does a Chapter 7 Bankruptcy Work?
After the bankruptcy application has been lodged, the court will appoint a trustee to oversee and administer the bankruptcy case. The person filing for bankruptcy is usually able to keep typical household goods and clothing. They may also keep their home and vehicles as long as they do not have more equity in those items than they can exempt. A bankruptcy trustee may allow an individual filing for bankruptcy to keep a vehicle secured by a car lien or a house with an outstanding mortgage. In these cases, that individual must cover all ongoing payments for these items, as well as continuing to pay the insurance.
Read below for a more in-depth look at the Chapter 7 bankruptcy process.
How Long Does a Chapter 7 Bankruptcy Take?
From filing the bankruptcy application to completion, a Chapter 7 bankruptcy usually takes anywhere from four to six months. At the completion of a Chapter 7 bankruptcy, most of the debts are “discharged”, meaning the individual is released from paying any more of the debt that was part of the bankruptcy.
Filing for Chapter 7 bankruptcy can be a long and complex process. Each person’s unique financial situation makes every filing unique. Get in touch with Dowe Law today and let them help you through the bankruptcy process quickly, easily and without fuss.