It’s usually unclear to people exactly what options are open to them when they are considering Chapter 7 bankruptcy, which is why a little Chapter 7 bankruptcy information can go a long way. The economy has been very tough on a lot of Americans lately, and the recent changes to bankruptcy laws has left many wondering exactly what Chapter 7 means. Chapter 7 is, if a filing is successful, the best way to get clear your debt. Please keep in mind though, that any decisions about the matter should be made in consultation with Eric Ollason, Attorney at Law.
Chapter 7 Bankruptcy is the complete liquidation of all property not subject to a list of State-determined or federally determined exemptions. This property is sold to reimburse, in part at least, the creditors that the debtor owes money to. There is no repayment plan under Chapter 7; the debts are simply discharged. Applying for this type of bankruptcy is the equivalent of a fresh start, debt-wise.
It doesn’t matter how much a creditor is owed by a debtor or even whether the creditor can pay the debt back over an extended period of time. So long as the debtor has applied for counseling from an approved credit or financial service 180 days prior to their filing for Chapter 7 and hasn’t been disrespectful of the courts proceedings in that same period, any corporation, individual, or partnership can apply for Chapter 7.
Of course, the court system isn’t about to let someone clear their debts if they are clearly capable of paying them but refusing to do so. Thus, the federal government developed a ‘means test’ to figure out whether or not someone is trying to abuse the system with his or her petition. Tucson chapter 7 bankruptcy attorneys at ERIC OLLASON ATTORNEY AT LAW LLC, are here to assist you with chapter 7.