subject: Bankruptcy Chapter 7- Elk Grove: The Basic Facts [print this page] "I have enough money to last me the rest of my life, unless I buy something", quoted by Jackie Mason stands true for most of the US residents. Due to the recent price rise and increased rate of unemployment, many are finding themselves knee deep in debt. Many have to foreclose their homes, in order to get out of financial crisis. However, if one can opt for Chapter7 bankruptcy, he can save his property.
Bankruptcy is a legal process by which a person can resolve his debts within a reasonable time, through the division of assets amongst the creditors. After that he has an opportunity to start afresh. He can opt for filing bankruptcy as an individual or on behalf of his business or other type of organization.
To file for bankruptcy, one has to consult a bankruptcy attorney and give him (the Attorney) the details of bank statements, loan papers, debt notices credit bills, and tax returns. The attorney will analyze his financial condition and will advise him to choose the most suitable type of bankruptcy. The two main objectives of bankruptcy are- to pay the creditors as much as possible from bankruptcy estate and to get a chance of starting afresh.
A resident of Elk Grove, California can file for Chapter 7 bankruptcy. Generally a person with very low income, who want to liquidate his assets, to pay off his debts opt for this type. All his non-exempt properties will be sold and liquidated. A trustee will be appointed to supervise his property. He has to surrender some of his assets to the trustee, and the latter will sell them and pay the creditors. However, depending on the bankruptcy law of California, he may be allowed to retain some of his personal properties.
It should also be remembered that once a person files for bankruptcy, it will create a negative effect on his credit score. A Chapter 7 stays on the credit report for 10 years. So, if the situation is such that there is no other option to repay debts, then only one may file for bankruptcy. It is also advisable to discuss with an experienced attorney.
