Thinking Of Filing Chapter 7 Bankruptcy Case? Here’s What You Need To Know!
Are you thinking of filing for bankruptcy under Chapter 7? While this can be a quick way to do it and as a filer, you won’t be required to pay back your debts, it is best to use a professional bankruptcy lawyer for the same.
You should know a few things about filing for bankruptcy under Chapter 7:
- Who Can File For Bankruptcy?’
If you are thinking of doing this, you need to know whether you are eligible to actually file for it. Not everyone will qualify. For instance, if your gross income is less than the state’s median income, you are going to be able to qualify for it.
You may still be able to qualify for it even if your gross income is higher, but after paying the allowed monthly debts, you will still not be able to make the Chapter 13 repayments required. Vohwinkellaw.com Is the best firm to ask for help in this matter.
- Time And Money Required
If you are thinking of filing for bankruptcy, it is obvious that your financial situation is not too rosy. That is why knowing how much time and money will be required is a good thing. The process is going to take anything between 4 to 6 months after you file it. You will be required to go to the courthouse along with your lawyer once to file the claim.
- Automatic Stay
Another point of consideration you must make about filing for Chapter 7 is that you will be getting an ‘’automatic stay’’. This is something that is going to stop the creditors from trying to collect the money that you owe them. This can be great because it is going to give you a lot of relief.
Basically, with this automatic stay, your creditors will not be able to take away your wages or your property, your house, or your car.
- Control Of Your Financial Affairs
The most important thing you need to know about filing for Chapter 7 in bankruptcy court is that you will be giving control of your financial affairs to the authorities this way. You will be placing your properties technically with the courts to do with it as they deem fit.
You will not be able to sell anything or dispose of or give away any of your properties after filing. However, whatever you earn in wages or acquire after filing the bankruptcy will be yours to do with.
- Your Property
It is normal to worry about what is going to happen to your property after you file for Chapter 7. Usually, most of such property that belongs to the debtors get exempted or is in such condition that they are virtually useless for the purpose of raising money to pay off creditors.
Filing for Chapter 7 in bankruptcy court is a huge decision. It must be taken after a visit to a professional lawyer with experience of the same.