Mounting Debt Can Be Relieved With Chapter 7 Bankruptcy
Debt collectors can be very persistent and make you feel pressured and helpless
. When you can't take anymore and are unable to make the necessary payments you might think about filing chapter 7 bankruptcy as an option.
Chapter 7 bankruptcy is a proceeding that will lead you out of debt. This will give you some breathing space so you may be able to pay back your creditors, and if you get a discharge - send you on your way to financial recovery.
By filing chapter 7 bankruptcy, you are asking the court for help in settling all your debts. Once you qualify, the court will then appoint a trustee to handle your case.
Your trustee will be given all of your assets and any property you may own. They will then turn these items into cash through liquidation. The money from these actions goes to pay your debts.
First, the trustee will have to take care of you. That means he should not leave you penniless that you can't live anymore. After your basic needs are taken care of, that is the time the trustee will start paying your creditors.
In the event that you own property or an asset that is needed for you to make a living (such as work tools/equipment) these items may be spared from liquidation. Additionally, any income you take in after filing for bankruptcy is going to be yours to keep and safe from creditors.
Speaking to a chapter 7 bankruptcy attorney will help you know how all this is done.
An attorney will know the bankruptcy process inside and out. They can make it more pleasant to go through the process of achieving your goal of discharge.
He will start by asking you to take the "means test". This test determines whether or not your income is equal to or lesser than the average state income. The means test is a requirement before you are allowed to file your petition for bankruptcy.
Your trustee comes into play as soon as your petition for bankruptcy is received and granted by the court. At this time you fall under "automatic stay" which means creditors now have to leave you alone and talk only with your trustee to try and collect when is owed to them.
Filing chapter 7 bankruptcy is your simplest and fastest way out of bankruptcy. You can get a discharge usually after 4-6 months.