Understanding Chapter 7 Bankruptcy
Bankruptcy is quite common nowadays as people have been struck with the tsunami of financial woes and troubles galore since mid-2008.
The sub-prime crisis and the resulting folding up of famed banks and financial institutions that were icons of the American financial services sector have led to great upheaval not only for corporations but also so many individuals.
People who had taken huge loans are now left high and dry as many are without jobs and the ability to repay the loans just does not exist anymore.
That's why so many people are now filing for Chapter 7 at this present time.
Chapter 7 Bankruptcy can occur primarily when the income of a person is lower than the state median, otherwise Chapter 13 Bankruptcy is what would be applicable.
This is also known as a straight bankruptcy as it involves liquidation of assets in order to make good the loss.
This type of bankruptcy is suitable for people who do not have a regular income and have no means of going in for a debt re-structuring to pay off the loan over 3-7 years as decided by the court under the provisions of Chapter 13 bankruptcy.
Bankruptcy under the chapter 7 may allow a person to retain some basic assets like car (for which loan is being repaid) and mortgage on home too.
Non exempt assets are sold off and the proceeds go towards fulfilling the loan requirements.
This type of law allows a person to go in for a fresh start and does not make the person liable for discharged debts.
A bankruptcy filing is not an easy thing which can be filed by any novice who wants to do so.
The terms and conditions are sophisticated and will require the intervention as well as advice of financial practitioners.
You can get a lot of details online about filing for bankruptcy.
But do not assume that reading up on bankruptcy makes you qualified to file for bankruptcy all by yourself.
There are many formalities, forms and assessments that need to be complied with in filing for bankruptcy and the task is best left alone for the experts.
The sub-prime crisis and the resulting folding up of famed banks and financial institutions that were icons of the American financial services sector have led to great upheaval not only for corporations but also so many individuals.
People who had taken huge loans are now left high and dry as many are without jobs and the ability to repay the loans just does not exist anymore.
That's why so many people are now filing for Chapter 7 at this present time.
Chapter 7 Bankruptcy can occur primarily when the income of a person is lower than the state median, otherwise Chapter 13 Bankruptcy is what would be applicable.
This is also known as a straight bankruptcy as it involves liquidation of assets in order to make good the loss.
This type of bankruptcy is suitable for people who do not have a regular income and have no means of going in for a debt re-structuring to pay off the loan over 3-7 years as decided by the court under the provisions of Chapter 13 bankruptcy.
Bankruptcy under the chapter 7 may allow a person to retain some basic assets like car (for which loan is being repaid) and mortgage on home too.
Non exempt assets are sold off and the proceeds go towards fulfilling the loan requirements.
This type of law allows a person to go in for a fresh start and does not make the person liable for discharged debts.
A bankruptcy filing is not an easy thing which can be filed by any novice who wants to do so.
The terms and conditions are sophisticated and will require the intervention as well as advice of financial practitioners.
You can get a lot of details online about filing for bankruptcy.
But do not assume that reading up on bankruptcy makes you qualified to file for bankruptcy all by yourself.
There are many formalities, forms and assessments that need to be complied with in filing for bankruptcy and the task is best left alone for the experts.
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