Filing Chapter 7 Bankruptcy

Financial debts can be a heavy burden to carry especially if you cannot find any means to pay your debts

. The last option you can ever think of is bankruptcy and filing for chapter 7 bankruptcy to be exact. The quicker the process, the more you want to file a chapter 7 type of bankruptcy. You cannot wait to be free of debts and finally start a new life living without debts.

In the list of types under bankruptcy, chapter 7 is the most efficient tool in discharging debts compared to other types of bankruptcy. That is why chapter 7 is sometimes referred to as straight or liquidation type bankruptcy. The process is efficient in eliminating debts. Chapter 7 discharges your debts through a process called liquidation. Unlike chapter 13, which is a repayment plan that can have a time period of several years, in chapter 7, you do not have to deal with paying your debts later after filing for bankruptcy. Almost all your debts are automatically discharged once you hand over your nonexempt properties to your assigned bankruptcy trustee for liquidation. The bankruptcy trustee will be the one to handle and distribute any money to your creditors that has been generated from the liquidation.

Filing chapter 7 bankruptcy also has its disadvantages compared to other types of bankruptcy like chapter 13. A person does not usually have the right to keep properties that are considered nonexempt. You can buy that property so you can keep it but if you cannot, it is mandated by law to hand over your nonexempt properties to your assigned bankruptcy trustee. Also, although bankruptcy chapter 7 is the fastest type of bankruptcy in eliminating debts, it is also the longest running bankruptcy status a person can ever have, that is a maximum of 8 years before you are discharged from your bankruptcy status. During this time period, it would be hard for you to obtain new credit. It is only after every 8 years that a person can file a chapter 7 type of bankruptcy.

There are number of ways a consumer can file for chapter 7 type of bankruptcy without spending much money. Expenses can derive from the preparations of your papers. You can lessen your expense here by preparing your papers by yourself. What you can do is research online about bankruptcy basics and its process. It is always a good idea to know what you are doing and being nave about the bankruptcy process can make you lose more money. Type bankruptcy in any search engines and you will have lots of results. You can scan each one of those bankruptcy sites and choose the one you think suits you more. Some of these sites offer free downloadable bankruptcy PDF forms and some even offer online bankruptcy lawyer service.

I also suggest hiring a petition preparer or a bankruptcy lawyer to prepare your papers. You will need to pay their flat fee and after your bankruptcy papers are properly prepared, bring them with you in the bankruptcy court and file your bankruptcy chapter 7. For more support on how to file bankruptcy, visit www.onlinebkassist.com

by: Steve

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