Chapter 7  bankruptcy has also been known as “straight bankruptcy” as it gets straight to the point without a lot of tangle or hassle.  What basically happens is your property will be liquidated and sold as to pay of all your outstanding debts.  Most of you assets will be gone so its very important to know your alternatives and if you should go for them.

Alternatives

The alternative style of bankruptcy from chapter 7 is chapter 13 (or chapter 11 if it is a business that you want to keep up after filling)  Chapter 13 lets you pay back your debts.  The courts give you some grace, your debt may be reduced and a reasonable monthly payment will be payed until you have no more debt.  If you want to keep you home this is the way to go.  Chapter 11 bankruptcy is exclusivly for business owners.  You dent will be adjusted or your repayment time will be extended (much like chapter 13)  Re-organization may also be involved with this style of bankruptcy.

Eligibility

If you are planning to file for chapter 7 bankruptcy you must have a lower than average income for your area.  If you dont you will have to file chapter 13.  Your attorney will be able to assess if you qualify. Not all debts, but most, will be resolved with chapter 7… or 13 for that matter.  You will not be able to put child support, alimony, student loans, or fines to rest.  And remember that you dont loose all you assets when filing chapter 7.

“Will I Lose Everything?”

Its everyones most pressing concern about chapter 7 and the answer is simply no.  Some of your property is exempt from being liquidated.  The following are protected your car, home, clothes, necessaties for survival and keeping a job. Don’t worry about loosing everything and dont hide from filling if you need to do it.

Benefits of Chapter 7

There are a lot of benefits that you will receive after filling for chapter 7.  Chapter 7 is a very fast procedure in comparison with other forms of bankruptcy.  You file, liquidate, and your done.  Other forms of bankruptcy will take upwards of 5 years to settle.  The is no repayement plan to keep track of and to make sure that all your debts are being payed on time.  You can begin rebuilding your credit.

Most of all you can get on with your life and enjoy the things that matter.