Learn What Chapter 7 Filings Are

Bankruptcy is an action that is legal and gives a person the chance to have a fresh financial start

. One type of bankruptcy is chapter 7, considered to be the cheapest and fastest in eliminating debts. Every person who is in need of bankruptcy seems to want to file this type of bankruptcy.

If you want to file your bankruptcy chapter 7, the first thing you need is to learn what chapter 7 filings are. The first thing a person does when he files a bankruptcy is, give a petition to the bankruptcy court. You are required to file bankruptcy, filling all specific information and filing papers to the bankruptcy court. The number of papers needed to fill up, prepare and file can be astounding for anyone who never had done any paper works in their life.

You need at least to provide this information on your papers, such as the complete list of your creditors, the type and amount of your debts, your income, assets, properties and expenses. Once you file this in the bankruptcy court, a process called automatic stay comes into effect. This means that all of your creditors are prohibited from collecting payment.

Now you know what chapter filings are and therefore should be aware of how much money you can spend on preparing those papers. Although you can file bankruptcy all by yourself, you still need to spend money on documents, papers and other requirements needed for your chapter 7 filing. Also, filling up your papers and filing them in the bankruptcy court by yourself can be risky. Any mistake that you made or any wrong information written down in your documents, has a great possibility in resulting to a person losing more properties to liquidation.

Bankruptcy do not need to be expensive, but do not sacrifice your paperwork quality because it is your financial life that is at stake here. Also, even if bankruptcy has its advantages, there are also disadvantages in filing for bankruptcy that you should know about. After filing for bankruptcy, its status will stick with you for years. This has a negative effect for people who would like to obtain new credit. This also implies a bad image on you as a person because many people have a wrong idea about people who have a history of filing bankruptcy. They think people who file bankruptcy are weak. Having to get yourself promoted or finding a new employment opportunity will be hard also. After you file your bankruptcy, make sure to check your credit report. Even if it has a bankruptcy status on it, put an effort in checking your papers; if there is a mistake or something that is not right, report it and have it corrected. Remember that not all creditors and lenders are the same, some strictly follow the rules and others are simply there for business. It is important that you file bankruptcy that is in the best light possible. For more information on how to file bankruptcy, visitthe link below.

by: Steve

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