Things You Must Know About The Chapter 7

Things You Must Know About The Chapter 7

There are various things an individual or a company can do for debt consolidation – one of the way-out is declaration of bankruptcy. When in deep debt, one should consider the clauses given in the chapter 7 of the United States Code. It is basically a form of debt consolidation or relief. The process requires the supervision of an expert lawyer to get relief from debts by means of liquidation of your assets. The amount extracted through liquidation is used to pay off the creditors. The payment is made on the basis of priority as defined by the bankruptcy law of the country. However, only an experienced and practicing lawyer could decide if there is any need for consolidation through chapter 7.

Chapter 7 and you

Now you must have got the idea that a majority of your assets is liquidated to pay off a part of the debt you owe to your creditors. There are certain exemptions to the assets that are seized by the court to pay off your debts. However, only an experienced lawyer would be able to guide well to claim those. You should remember that such exemptions are extremely limited and are obtainable if the case is filed tactfully.

Chapter 7 is mostly preferred in case where a person does not have a house or any such valuable to lose. Filing a case under this bankruptcy law is as good as starting afresh. When it comes to filing a bankruptcy case under chapter 7, Roseville law firms comprise reputed attorneys whom you can trust. While you would be able to get rid of the huge burden of debt, you could avoid tensions and anxiety related to creditors call at odd hours and tensions. However, there are certain questions whose answers would determine whether filing such bankruptcy case would be right for you. Here are some of those important questions:

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Questions to ask yourself

* Do you have a huge amount of unsecured debt like debts related to medical bills and credit cards?

* Do you stay in a rented apartment or do your own a house?

* Do you have a monthly income that is well below the median level as compared to the size of your household?

* Are you the owner of any such assets that could be exempted under chapter 7 of the bankruptcy law?