subject: File Personal Bankruptcy Chapter 7 [print this page] Chapter 7 is a type of bankruptcy that is difficult to file because of its ability to erase huge amounts of debts. The debtor does not necessarily have to pay the full amount of debt that he owes to his creditors. Whatever amount of debts that exceeded, the proceeds generated from the liquidation of the properties of the debtor will be discharged.
So how do you file personal bankruptcy chapter 7? The first thing you need to do is look at your monthly income. You should have an income that is below average according to your state. Each state has different category on how much income is considered as a below average, average or above average. Having an income below average will make your chances to file for a bankruptcy chapter 7 much higher. Before you can file bankruptcy chapter 7, you need to take the means test. This test will determine how much income you really have and will reveal if you have any means to pay your debts. If your result falls on having the capacity to pay your debts, you are not eligible to file for a chapter 7 type of bankruptcy. However, if the result of the test reveals that you do not have the capacity or income to pay for your debts then you are eligible to file for bankruptcy.
A person who files for a bankruptcy chapter 7 can keep some of his properties that are not qualified to be liquidated. These types of properties are called exempt properties. Chapter 7 usually takes a shorter time to file compared to chapter 13. This is because the process is straight forward in which the debtor only needs to meet the qualifications needed. Chapter 7 costs less compared to chapter 13, but this does not mean that it will not get expensive. It can if you try to hire a full time bankruptcy lawyer to do all the work for you. This way, it can be really easy for you to file your bankruptcy, having a lawyer is highly encouraged because you can ask him anything and the lawyer will give you legal advice.
There are ways you can file personal bankruptcy chapter 7 for less money but it needs a little work on your part. The first thing you can do is surf the internet for bankruptcy companies that offer such services. This can be fast and convenient but whatever you read should not replace the legal advice of your bankruptcy lawyer, if ever you have one. You can spend at least 30 minutes a day comparing different bankruptcy companies for their services and prices so that you can find the right one for you.
Another thing I can suggest is to hire a petition preparer or a bankruptcy lawyer to prepare your papers and then you can pay them their flat fee and you can do all the rest of the work like filing the petition in court. This way you will not risk yourself of having mistakes in your papers that can cost you to lose more assets and this is the best way to do if you do not have enough money to hire an attorney. For more support on how to file bankruptcy, visit the link below.
