Chapter 7 bankruptcy is also known as straight bankruptcy and is a process of liquidation in which the debtor turns over all non-exempt property to the trustee of the bankruptcy proceedings. The trustee will, in turn, convert it to cash and distribute the proceeds to creditors.
Within four months or so, the debtor will receive a discharge of all dischargeable debts. According to bankruptcy information, most of the Chapter 7 bankruptcy cases help in giving the debtor a relatively quick “fresh start” because he or she would not have any assets that could be lost.
Different Types of Bankruptcies
Knowing the differences between Chapter 7 and Chapter 13 bankruptcies highlights the need for adequate bankruptcy information to be readily available. Being distinct from Chapter 7 bankruptcy, Chapter 13 bankruptcy is provided for those that earn wages and who can thus use their income to pay off creditors within a stipulated time period. It is only if there is enough bankruptcy information available, that one can learn about the different forms of bankruptcy, learn how best to avoid them, and in case of bankruptcy, know how best to deal with them.
With proper bankruptcy information in hand, you will know that bankruptcy law is available for those who are unable to pay off their debts which can be utilized to provide a means of paying off your creditors. With no more debtors’ prisons, you need not worry about spending time behind bars due to inability to pay off your debts.
Bankruptcy is indeed a dreaded word but it affects a lot of people. Credit counseling services as well as do-it-yourself bankruptcy kits are widely available but the bankruptcy process is complicated. Before rushing into any decision to file bankruptcy you should consult with an attorney who is a bankruptcy specialist who can assist you in deciding whether or not you should you file bankruptcy. Record of a bankruptcy stays on a person’s credit report for ten years. Sometimes bankruptcy is not the answer and a good bankruptcy attorney will tell you that.
No doubt, bankruptcy is very unwanted. But in case it does become a reality, you should get all the pertinent bankruptcy information you can.
Call us today and speak directly with an attorney for a free, no obligation, consultation to see if you qualify for bankruptcy and if it is the right decision for you and your family.
Wessler Law Firm is a small family owned law firm specializing in bankruptcy law since 1982.
William P Wessler is the only Board Certified Bankruptcy attorney on the Mississippi Gulf Coast and is the longest Board Certified Bankruptcy attorney in the state of Mississippi.
Disclaimer: This article is meant for reference only, and is not intended to be legal advice.
For legal counsel regarding your situation, please consult an attorney licensed in your state.