No one can be sure of their well-being in the coming years, months or even days. Lots of factors and conditions can turn our lives upside down and leave us in a terrible financial situation. However, American law is adapted to the needs of citizens and it has been being improved for decades so that every American feels safe under any life situations.
Do you know how to turn the effect of personal bankruptcy to your advantage and solve debt problems? Today we will familiarize you with Chapter 7 Bankruptcy and its advantages you can use.
What Does It Mean?
Chapter 7 bankruptcy is a kind of consumer software that helps Americans to solve any cases associated with bankruptcy and all related difficulties. In general, it can be utilized to refer to government help to be relieved of obligations to pay debts in case you are bankrupt. In such a case, you will be allowed not to pay most kinds of debts except:
- any debts you are obliged to pay to help your child
- tax payments that are obligatory in the US
- all debts put on you by a court decision
- loans you have used for making university payments
How To File?
** The entire process can be finished within a half a year
- Create a correct petition, prepare all documents related to your current assets and debts and send it to the federal court. You will be under state protection and no one will be able to sue you because of non-payment of debts
- Next, the court will appoint a trustee who will manage the process
- Next, you will meet with the trustee and your creditors
- Proof of your right to state bankruptcy under the simplified procedure
- Formalities related to the sale of your property in favor of creditors in the amount permitted by the state
- The last stage is the closure of your case and stating the non-admissibility of claims from creditors.