Can I File Chapter 7

Can I File Chapter 7

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Can I file chapter 7 type of bankruptcy? To satisfy this question, there are numerous factors that can affect your eligibility to file bankruptcy but the primary thing is that there are things you can do to get yourself eligible to file bankruptcy chapter 7.

Becoming eligible to file bankruptcy is one thing; eligibility to file chapter 7 is another. There are many types of bankruptcy to choose from and more often than not, you are probably more suited to a chapter 13 type of bankruptcy which is a repayment plan. But do not get your hopes down. Probably, your financial situation is more suited for a chapter 13 type but you do not want to spend more years handling the paying of your debts even if it is a repayment plan. Fortunately, there is a way to get your self to be eligible to file a chapter 7. All you need to learn is timing. In bankruptcy, timing is everything and that determines how well you can file your bankruptcy. What do I mean by this? Let us say for example, you have a current income that is classified as above average income. This means that your income probably exceeds your expenses and this is a minus point if you apply for eligibility for chapter 7. Because of this, it is not advisable for you to file bankruptcy. You will just end up with a chapter 13 which is a repayment plan. If you can foretell that your income in the coming months will drop down significantly below the average level, then the best thing for you to do is to hold back for a little while. When the time arrives where your income drops then file your bankruptcy chapter 7. This time, your chance is greater than if you file your bankruptcy prior to the time your income drops below the average line.

People who desire to file a bankruptcy always ask this first; can I file chapter 7 type of bankruptcy? And they ask this question without even knowing how bankruptcy chapter 7 works.

Chapter 7 is a type of bankruptcy that removes debts through a process called liquidation. Debts are partly or fully paid depending on how much money the liquidation had produced. Liquidation does not secure the full amount of debts that will be paid back to the creditors. Properties that are liquidated sometimes do not satisfy the full amount of debts the debtors owe to the creditors. Debts that are left after the liquidation process are considered free, meaning the debtor does not have to deal with those debts anymore. Take note that only properties that are not exempt are put through liquidation, other properties that are called exempt properties are still kept by the debtor.

There are ways you can file chapter 7 affordably. I suggest you take the service of a petition preparer a bankruptcy lawyer to prepare your papers. You can lose more assets if you make mistakes in preparing
your own papers. You will only need to settle for their flat fee. After getting your paper done then you can start filing for bankruptcy. For more support on how to file bankruptcy, visit the link below.

About the Author:
Steve Young is the author of The #1 Secret On How To File Bankruptcy. To get your free CD on How to File Bankruptcy Without an Attoney, go to www.onlinebkassist.com



Article Originally Published On: http://www.articlesnatch.com


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