Chapter 7 Bankruptcy For Individuals And What You Need To Know About It
The United States are still under the heavy influence of the 2008 economic crisis. Same as the rest of the world, the Americans are trying to put themselves back on their feet, both at the level of the individuals and at the level of the companies. If you are an individual who finds himself/herself in the situation where you cannot manage your debt anymore, then you should know the fact that you can file for bankruptcy. Although this may be a lengthy process in some cases and although you will have to take some money out of your pocket, its outcomes may be the best thing that could happen for you.
Out of all the six types of bankruptcy chapters under which you can file, Chapter 7 is probably the easiest and the most well-known type. Under this chapter, you will leave all of your non-exempt assets into the hands of a trustee, who, in his/her turn will sell these assets in order to pay your lenders. Even though they will be getting some money, it will be only a small portion out of the entire debt, so this can be considered to be one of the most important advantages shown by the Chapter 7 bankruptcy.
Chapter 7 is available both for businesses and for individuals, and if you find yourself in the latter category, then you may want to know how this will work for you. First of all, you should bear in mind the fact that the value of the properties you can keep will vary from one state to another. Furthermore, you will also want to know that mortgages and secured car loans usually survive this procedure, so you will still be left with paying for those. Child and spouse support debt, student loans and tax debt will also be exceptions from the discharge. Therefore, you will qualify best for this type of bankruptcy only if you have a lower income (again, this is specified in the law) and if your debt is majorly constituted out of unsecured loans.
Also, you should know the fact that declaring this type of bankruptcy will show in your credit report for the following 10 years, so before making any move, do advise yourself with a dallas bankruptcy lawyer who will be able to analyze your situation from a closer point of view and who will be able to tell you if filing for bankruptcy in general or filing for Chapter 7 bankruptcy in particular is the best financial move for you.