Personal Bankruptcy Information Critical For Understanding Federal Bankruptcy Procedures
It is imperative for a debtor to secure factual personal bankruptcy information from a qualified and experienced attorney. This could assist him to have a thorough understanding of the federal and the state bankruptcy rules that apply to chapter 7 and even in preparing the documents required to be furnished along with the petition under existing bankruptcy law.
By filing a chapter 7 in the bankruptcy court, a debtor can get a discharge for his debts subject to his getting qualified for the liquidation of assets. But in any case, a bankruptcy filer stands to lose non-exempt property that includes stocks, bonds, and savings in cash or such other valuable belongings. Typically, the chapter 7 bankruptcy trustee, who administrates the court proceedings, is authorized to order a sale of these assets for paying off the creditors. Even IRS tax refunds which are due to you could be utilized for the purpose. However, under bankruptcy law, the debtor has the right to own certain important assets like house, car, furniture, etc. Usually, the court charges an amount which is below $ 300 for filing bankruptcy costs. Nevertheless, it is important for a probable personal bankruptcy filer to know the process and timeline when considering filing for a chapter 7 bankruptcy solution.
Understanding the chapter 7 process
It is imperative for a debtor to secure factual personal bankruptcy information from a qualified and experienced attorney. This could assist him to have a thorough understanding of the federal and the state bankruptcy rules that apply to chapter 7 and even in preparing the documents required to be furnished along with the petition under existing bankruptcy law. Normally, a debtor is required to fill up form no. 521 as well as form B22A for the “Means Test” which determines the debtor’s ability to dole out some costs.
Nevertheless, federal bankruptcy laws have undergone rampant changes and thereby filing for bankruptcy has become more complex than it was earlier. As per the new set of rules, a debtor is required to undergo credit counseling prior to filing a petition. Add to that the lawyer’s fees, which could considerably increase your expenses. Hence, if these expenditures become unaffordable, it is better to file for a personal bankruptcy under chapter 13 bankruptcy laws and qualify for a court supervised monthly repayment plan for paying back your creditors.
Knowing the chapter 7 timeline
A chapter 7 bankruptcy filer could get a discharge for his debts within a period of 4 to 6 months from the date of filing a petition in the bankruptcy court. An automatic stay or temporary injunction comes into effect the day on which you file your case. This prevents the creditors from contacting or harassing you for payments. And the “341 Meeting” of the court trustee with the creditors under section 341 of the bankruptcy law takes place within 20 to 40 days of the date of filing the personal bankruptcy petition.
Reputed online service providers like Bankruptcyonly employ qualified as well as highly experienced bankruptcy attorneys to help debtors who are considering filing personal bankruptcy. To get more information, you need to avail such professional help that could enable you to secure expert guidance which could be critical to have a thorough understanding of the federal bankruptcy laws.
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