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1) Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a legal process of eliminating your debts and obtaining a fresh start. Though most of the debts can be eliminated by chapter 7, there are some exceptions like student loans and certain taxes which cannot be eliminated.
2) Time is taken for Chapter 7
An average-case in Chapter 7 takes about 3 months from filing. The time taken to file for chapter 7 is normally 3 business days or it can be even lesser. It depends on how fast you submit your documents and complete your online credit counseling.
3) Debts in Chapter 7
Once the case is closed you get to keep most of your assets. In case there is something that you have to lose, you will be informed in advance of filing your case. You can get rid of most of your debts, but there are some, that are still applicable even after applying for bankruptcy chapter 7.
4) Chapter 7 and Chapter 13 difference
The major difference between both is, chapter 13 accounts for debt consolidation, while chapter 7 is for debt elimination. Getting rid of parking tickets and tollway violations are possible in chapter 13 but not in Chapter 7.
5) Documents needed
The biggest disadvantage of filing for chapter 7 is the case will be reported on your credit score for 10 years. Also, you have to report all the items of value to the bankruptcy court. To file for chapter 7 bankruptcy, all you need is proof of income and the last two ITRs that you filled. To file another bankruptcy, the time gap should be eight years from filing a chapter 7, or 6 years from filing a chapter 13 before.
6) Credit Score and Assets
Any bankruptcy filing will lower your score for the short term but you can raise your credit score again. After a minimum waiting period of 3 years, you can again why your credit score by your house.
7) Creditors
You need to be sure and remember to include all of your creditors while filing the petition.
In the meeting with the creditors, the trustee will ask you of all your debts, and based on that, your petition will be passed.
8) Attorney
You must be sure and hire a good attorney while filing for bankruptcy. A good attorney will help you with all of the proceedings including training you about the bankruptcy meeting. You will not need to go to court for chapter 7. You can also contact Recovery Law Group from Los Angeles & Dallas, TX for the Same. Contact – (888-297-6203)
9) Spouse’s Credit
If you are married, it is not necessary to include your spouse in your bankruptcy. However, you have to mention the spouse’s income and expenses in your petition.
Filing Chapter 7 is not a difficult task. However, when you do so, you need to consult a good attorney and check the points that you want to file for.