A person who has to deal with loss in business, unexpected expenses, credit debt or utility payment has two means to file in for bankruptcy viz. Chapter 7 and 13. Most of the time people prefer to hire professional lawyers who guide them thoroughly about the proceedings of these two chapters. If you are in dilemma about which Chapter would suit you best then it is recommended to find trusted personal bankruptcy attorney near me.
Why should you go with Chapter 7?
If you want to turn all of your assets into cash to pay the amount to your creditors, then this chapter is considered very fruitful for a person. All of your non-exempt belongings can be sold so that your creditors can be paid.
Things to consider before filing through Chapter 7
Before you are filing for Chapter 7 then make sure that you do not make any large sum of payment to any of your lenders. Since this may be considered as a biased payment and you may not get a chance for filing through Chapter 7 bankruptcy.
During the filing process you can safely keep the retirement amount this will keep your finances steady during the future years. Thus, it is recommended not to pay your creditor through retirement amount. One should also prevent from purchase of costly items before he or she is filing for chapter 7. This will also make your case weak and your filing may get rejected.
Filing process of chapter 7
In the initial stage, it is recommended to get thorough credit counseling through professional attorney. In the second step, you have to correctly file various petitions and have to fill in forms, it is recommended to do so under the guidance of a professional. You then have to file in for the bankruptcy and have to meet your creditors on a pre-defined date. After the court approves your filing non-exempted assets will get liquefied and then you can also take a credit management crash course. After six months of filing you will get a discharge paper and your case gets closed.