Understanding And Filing A Chapter 7 Bankruptcy Case

26 March 2015
 Categories: Law, Blog


You might feel that bankruptcy is a bad thing, since the word has a stigma attached to it. Bankruptcy, with the help of companies like Armed Forces Legal Center can be the best thing for you, depending on your particular financial situation. Consider the following guidelines if you are going through financial problems, so that you are able to turn your life around and make the most of it. This guide will teach you the parameters of bankruptcy, what characteristics make Chapter 7 bankruptcy unique and other considerations for you if you are filing. 

What happens during the Chapter 7 bankruptcy process?

During Chapter 7 bankruptcy, you will be relieved of your debts, with the understanding that you must liquidate a number of assets. The court mandated liquidation of assets takes place so that filers can get debt relief, without having to figure out how to come up with ways to pay the money back. This takes some of the worry our of the situation, while still allowing people to get the debt relief that they so desperately need. 

What are the benefits of Chapter 7 bankruptcy?

When going into the bankruptcy process, it pays to get an understanding of the advantages that you have. With this in mind, you should consider some of the following information regarding Chapter 7 bankruptcy:

  • You will receive a clean slate, which allows you to reboot your financial life and bounce back from some of the turmoil that you have gone through 
  • There are no repayment plans for you to worry about
  • This is the quickest form of bankruptcy for you to resolve your debt
  • You will be able to keep future income, without worrying about having your wages garnished

What should I keep in mind about filing for Chapter 7 bankruptcy?

The process of going through bankruptcy is very involved, so you need to be sure that you understand what you're facing. Keep the following guidelines in mind, as you look to resolve your debt:

  • Make sure that you hire a licensed bankruptcy attorney, so that you're able to get a resolution with the help of a seasoned professional
  • Understand that you will have to take a financial means test, in order to qualify for bankruptcy
  • Don't worry if you are denied Chapter 7 bankruptcy when you file, as you may still be eligible for Chapter 13 bankruptcy
  • Decide whether you will file as an individual or jointly

Consider this information, so that you are able to take full advantage of your financial situation and turn your life around.