CAN YOU STILL QUALIFY FOR A CHAPTER 7 BANKRUPTCY

The amount varies from state to state.  In bankruptcy chapter 7, debts that can’t be discharged include: alimony and child maintenance, certain taxes, government backed educational loans, debts resulting from injury or death by the debtor to another entity, and debts for criminal restitution orders.  For more chapter 7 bankruptcy information on other non-dischargeable debts, research chapter 7 bankruptcy law or contact your local bankruptcy attorney.

 

A chapter 7 bankruptcy may stay on your credit longer than a chapter 13 bankruptcy.  In a bankruptcy chapter 7 you pay nothing back to your creditors.  If you own a home with significant equity, have assets to protect, or have co-signers to a loan, you probably shouldn’t be filing chapter 7 bankruptcy.

Filing chapter 7 bankruptcy  requires you to complete a chapter 7 bankruptcy form.  Under chapter 7 bankruptcy law, Bankruptcy chapter 7 may also be initiated by creditors filing a petition against the debtor.  Chapter 7 bankruptcy law then initiates an "automatic stay."  This stops your creditors from collecting what you owe.  A primary reason many file chapter 7 bankruptcy is to temporarily protect their wages, bank accounts, cars, houses or other property. 

 

Until your bankruptcy chapter 7 ends, your financial problems are in the hands of the bankruptcy court.  The court assumes legal control of your property (except your exempt property) and debts upon your filing chapter 7 bankruptcy.  Nothing can be sold or paid without the court's consent.

If the debtor owns a business, Chapter 7 bankruptcy law 11 U.S.C. § 721 authorizes the trustee to operate the debtor’s business for a limited period of time, if this will benefit the creditors and enhance the liquidation of the estate.  The distribution of the estate’s property is governed by section 726 of the Chapter 7 bankruptcy law that sets forth the order of payment of all claims.

 

If you have property like an automobile, and want to keep possession, you may need to “reaffirm” the debt. Chapter 7 bankruptcy law defines this as an agreement between the debtor and the creditor that the debtor will pay all or a portion of the money owed, even though the debtor has filed bankruptcy chapter 7.  You should consult an attorney to ensure your rights are protected.

Chapter 7 bankruptcy law Rule 4004(c) states that unless a complaint is filed objecting to the discharge of the debts or the debtor files a written waiver, the discharge will be granted relatively early in the bankruptcy chapter 7 case, or 60 to 90 days after the date first set for the meeting of creditors. When filing chapter 7 bankruptcy, a discharge is rarely denied. 

Under chapter 7 bankruptcy law a discharge may be denied if the debtor: fails to obey the bankruptcy court; fails to maintain or produce adequate financial records; doesn’t properly explain any loss of assets; commits a bankruptcy crime; or fraudulently conceals property that would have become property of the estate.

A Chapter 7 bankruptcy stays on your credit report for 10 years from the date the chapter 7 bankruptcy is discharged. However, it stays on your court records for 20 years, as public record.  Issuers of credit are free to consider the fact of a chapter 7 bankruptcy filing in deciding whether to extend credit. Some issuers of credit may be willing to extend credit only after a number of years have passed, or until the chapter 7 bankruptcy filing is no longer on the credit report.

Filing chapter 7 bankruptcy  should be the last resort for anyone in a difficult financial situation. There are other options available that should be explored first.  Of course, in some cases filing chapter 7 bankruptcy  may be necessary.  However, as you can see from the chapter 7 bankruptcy information we’ve presented, it should be avoided if possible.  A competent debt resolution company can help reduce your debts to a manageable level so you don’t have to proceed with a bankruptcy chapter 7.  For a free consultation from Professional Debt Advisors, you can simply fill out the form on the right.  You can also reach us immediately at 866-559-3328.