What is Chapter 7 bankruptcy?

A debtor could be an individual or a business and the debts could be secured or unsecured. One of the purposes of bankruptcy is to keep the economy from stalling and therefore, it is detailed and comprehensive. Different types of debts can be ended with different types of bankruptcy proceedings. Chapter 7 bankruptcy is designed for individuals who cannot pay their debts and is commonly referred to as ‘fresh start bankruptcy.’ It helps in getting rid of unsecured debts to make the debt-ridden individual debt-free.

What does the law state about Chapter 7?

To basics of chapter 7 bankruptcy ny proceedings are:

  • The debtor must have not claimed the same relief in the last 8 preceding years and the applicant must pass a means test. The means test is to determine your average monthly income.
  • Unsecured debts are prioritized over secured debts. Unsecured debts are further divided into different categories and classes and each such class is given a priority for payment.
  • Under the proceedings, a trustee is appointed to liquidate non-exempt assets. These assets include stocks or bonds, a second house, and so forth.

Certain assets are exempted and a bankruptcy attorney can help you save them from being liquidated. Also, the attorney will ensure that most of your debts are discharged.

What are the benefits of Chapter 7?

Chapter 7 proceedings are the best form of proceedings to help an individual get free of unsecured debts. They help in repayment and discharging of debts quickly and include other benefits.

Through chapter 7 bankruptcy ny, the collection of money and wage garnishment by creditors can be stopped. It helps in saving present-day income. The debts are repaid within 3 months and the unpaid debts are discharged. The debtor becomes debt-free completely.

After the completion of proceedings, the creditors cannot harass or demand any more money from the debtor. The debtor starts afresh. Also, since the creditor score is slightly approved, the debtor can make new investments. Not all the debtor’s assets are liquidated. Only non-exempt assets are liquidated to repay debts.

What is the cost of Chapter 7 proceedings?

There is no specific way to determine the entire chapter 7 bankruptcy cost. Different variables will define the total cost of proceedings:

  • To file for bankruptcy, you will be required to pay the court fees. Court fee has to be paid in every legal proceeding. It is minimal.
  • Applicants have to take credit counseling and debtor education courses. The fee for the same is different in different areas. These courses are sometimes included in the attorney’s fees.
  • The fees to be paid to the bankruptcy attorney. This can vary greatly as experienced lawyers charge relatively more. The best bankruptcy attorneys charge affordable rates for legal services.

Initiate Chapter 7 Proceedings to discharge Debts

Chapter 7 proceedings can be filed by individuals overburdened with debts. If you are being harassed by the creditors, the proceedings prove useful as wage garnishment is stopped. Only the most experienced and professional attorneys should be hired for the task. The attorneys will guide you at every step of the process to keep you informed and updated. Bankruptcy lawyers can be searched through personal contacts or can be looked up online. Websites such as midtownbankruptcy have made it easier to find good chapter 7 attorneys.

There are many benefits of Chapter 7 bankruptcy. It helps in ending debts and making the debtor start afresh. Unsecured debts such as medical bills, credit card payments, and so forth are prioritized. Also, the process is completed within 3 months without affecting most of the debtor’s personal property. Hire the best attorney for ending your debt obligations and start afresh.

You may also like

Leave a reply