What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, often called a straight bankruptcy, is a liquidation proceeding. The borrower relinquishes all non-exempt property to the bankruptcy trustee who then turns it to money for payment to the creditors. The debtor receives a discharge of all dischargeable debts usually inside of 4 months. In the vast majority of cases the debtor has no assets that he / she would lose so Chapter 7 will allow that person a reasonably quick “fresh start”.
One of the primary purposes of Bankruptcy Law is to allow a person, who is hopelessly burdened with debt, a fresh start by wiping out his or her debt.
Men and women who file for chapter 7 bankruptcy must agree to go to credit counseling. After filing chapter 7 bankruptcy, it may be challenging to obtain credit for several years, and it is not possible to file for personal bankruptcy again for a set period of time.
It has become more challenging to file for chapter 7 bankruptcy in the United states, thanks to laws which drastically tightened the bankruptcy policies in the early 2000s. It is recommended to check with a legal professional and an accountant before investing in a bankruptcy filing, because although the professional fees for the consultation may be high, there may be an alternative that has not been thought about. A professional consultation can also smooth the way to move ahead with bankruptcy filings, if a person decides to continue with bankruptcy proceedings.
What Is Chapter 13 Personal Bankruptcy?
Chapter 13 Bankruptcy is commonly recognized as a reorganization bankruptcy. Chapter 13 bankruptcy is filed by individuals who want to repay their debts over a time period of 3 to 5 years. This type of bankruptcy appeals to people who have non-exempt assets that they want to retain. Additionally it is only an alternative for people who have predictable earnings and whose income is adequate to pay their reasonable expenses with some sum remaining to pay down their financial obligations.
Hiring an experienced Boston bankruptcy lawyer is an important decision that should not be taken lightly. Make sure to setup a consultation with the Massachusetts Chapter 7 attorneys so that you can better understand your available options.
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