What is Chapter 7 Bankruptcy?

Usually, Chapter 7 bankruptcy protection is also called the “liquidation” or “straight” bankruptcy. This is mainly because the bankruptcy trustee liquidates the assets of the debtor and sell them. Thereafter, uses the proceeds as a payment to the creditors so then you are free from all your debts and can start afresh.

Yet, upon filing bankruptcy Chapter 7, you may lose some properties and end up with a bad consumer credit score.

How to file Chapter 7?

You start your Chapter 7 bankruptcy case by filing a petition with the bankruptcy court in an area where you legally reside or where your main business assets are situated.

Together with your petition, you must also submit the following:

*Schedule of assets and liabilities
*Schedule of current income and expenditures
*Statement of financial affairs
*Schedule of executory contracts and unexpired leases
*Must give a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case to the assigned case trustee

Individual debtors must file:

*Certificate of credit counseling
*A copy of any debt repayment plan formulated during credit counseling
*Proof of payment from employers received 60 days before filing
*Statement of monthly net income and if any, an anticipated increase in income or expenses after filing
*Record of any interest the debtor has in federal or state qualified education or tuition accounts

For married couples and other partnerships, they may choose whether to file a joint or individual petition.

You should give the following information to complete your bankruptcy petition:

*List of all creditors and the amount and nature of their claims;
*Source, amount, and frequency of the debtor's income;
*List of all the debtor's property; and
*Detailed list of the debtor's monthly living expenses, such as food, clothing, shelter, utilities, taxes, transportation, medicine, etc.

What is Chapter 7: What is a reaffirmation agreement in a Chapter 7?

When you reaffirm a debt in Chapter 7 bankruptcy law, you got to keep a certain property you don’t want to lose under a reaffirmation agreement chapter 7 of which you agree to take responsibility of paying the debt after your bankruptcy case ends.

Moreover, you need to comply with the terms indicated in the reaffirmation agreement and make sure to pay up to date. Because if you fail to abide, the creditor can take the property as they are entitled to.

So, you might want to ask a question such as, “can I keep my leased car in Chapter 7?” Yes you can by coming into a new contract usually with the same terms with the creditor and submit it to the court.

How much does my bankruptcy Chapter 7 cost?

In Chapter 7 and any chapters of the Bankruptcy Code, you have to pay the filing fee of $335. A bankruptcy trustee usually charges $15 to $20 dollars. To know more about the bankruptcy fees and charges and a total estimate of your bankruptcy case, consult a bankruptcy lawyer. Also, with a sincere and honest lawyer, chapter 7 bankruptcy lawyer brooklyn ny you can have a bankruptcy chapter 7 low cost.

Chapter 7 bankruptcy exemptions

Yes, you may lose some properties when filing Chapter 7 bankruptcy, yet you can also keep them through bankruptcy exemptions. Which means, the bankruptcy trustee cannot sell them.

However, the amount of the property you can keep still depends on the value of your assets and specific exemptions you are to claim.

Bankruptcy law may be complex, but with the guidance and help of a bankruptcy lawyer, there are lots of advantages and options you can choose from.

Thereafter, you get to keep what you want to keep and get rid of the debts you want to wipe off.

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