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Chapter 7 Bankruptcy Information - Educate yourself about Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is considered to be the last resort or ultimate solution to most debt problems. If you have excessive credit card debt or other bills such as medical debts, utilities, foreclosures, tax debts, domestic relations proceeding, contingency lawsuits, professional malpractice debts, etc, you could wipe all of them out by declaring bankruptcy. However making the decision of filing bankruptcy is not an easy task for most people as it involves a lot of careful financial pre-planning, legal advice & future consequences.
A chapter 7 bankruptcy discharge releases you from personal liability for discharged debts and stops the creditors from contacting you or threatening you, or taking any action against you in an effort to collect outstanding debts. Did you know that one of the requirements of filing chapter 7 bankruptcy is to undergo a Chapter 7 Means Test and to submit a Current Monthly Income report to the bankruptcy court. A means test is a three step mathematical calculation done on income & expense worksheet that makes sure people are not abusing the bankruptcy system. If your income falls below your State's Median Income for Chapter 7 Bankruptcy filers, then you are not required to take a means test.
The following list of properties may be exempt from creditors under US Bankruptcy code Section 522(d). • Debtor’s interest in personal property not to exceed $18,450 in value including property that the debtor uses as a personal residence, or an eligible dependent of the debtor uses or a private burial plot for the debtor; • Debtor’s interest in a motor vehicle not to exceed $2,950 in value • Debtor’s interest in value in any particular item not to exceed $425 or $9,850 in aggregate value including household furnishings, goods, appliances, books, apparel & clothing, pets or musical instruments that are used primarily for personal family use
The main function of a bankruptcy
court trustee is to liquidate (turn in to cash) the debtor’s
non-exempt assets for payment to unsecured creditors with the view of
maximizing the value of the assets to the unsecured creditors. Of course
before each asset is sold off, a lien check is done to make sure that
a secured creditor has not already put a lien on the property being liquidated.
Primary duties of a bankruptcy court trustee are i) Liquidation proceedings
ii) Business reorganizations iii) Family, farm & fisherman reorganization
and iv) Wage Earner Bankruptcy.
Thinking of filing bankruptcy soon? Wait! Use this calculator below to see how long it would take you to pay off your debts by entering your total debts, total monthly payments and your current interest rate. This will help you decide whether pursuing bankruptcy is really the option for you!
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Filing
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