What Is Chapter 7 Bankruptcy?

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Chapter 7 bankruptcy is something that you can file only if you are eligible. With chapter 7 bankruptcy, you are canceling all of your debts with the help of a bankruptcy attorney. During this process, your attorney may sell some of your property to help pay your creditors with your permission and more. Here's what you want to know about chapter 7 bankruptcy if you are thinking about filing yourself:

• Filing Costs Money: When you file for bankruptcy, you are going to have to pay fees, such as attorney fees. Also, you typically must have a court hearing, which is going to cost you in court fees as well. On top of this, you are going to be required by the court to attend credit counseling meetings for some period of time, which will cost you hourly, typically. This is why, if you are going to file chapter 7 bankruptcy, you must be prepared to pay these costs in order to have your debt canceled. If your debt is high enough, then the fees are usually worth it in the end.
• You Must Be Qualified: You cannot file chapter 7 bankruptcy if you have already filed in the past 8 years or if, based on your income, you are better set to file chapter 13 bankruptcy. Your bankruptcy attorney, based on this information, will be able to tell you what your best option is. 
• Property Can Be Sold: During the process of filing bankruptcy, you are going to be required to attend a creditors meeting. During this time, the property that you own is going to be looked at. If the property isn't worth very much, then it is not going to be used to cancel your debts and you get to keep it. However, if some property is found to be worth some money, then you are going to have to give that property up. However, in some cases, you can give the cash value for the property and still keep your property if desired. 
• You May Face Unresolved Debts: There are certain debts that aren't going to be canceled out during the bankruptcy process, which is important to keep in mind. For example, it is not going to take away child support costs, student loans, or tax debts that you owe. There may be some cases where these debts are taken care of, but typically they are not during chapter 7 bankruptcy. 

By knowing a little bit more about chapter 7 bankruptcy, you can better understand whether or not filing is right for you. If you still aren't sure, speaking with a law firm, such as Sever Law Office, is the best way to find out. Your bankruptcy attorney will also be sure that you are filing and filling out paperwork in the best way to ensure that you are getting what exactly you want out of the whole process.

19 February 2015