WHAT IS CHAPTER 7 BANKRUPTCY?
What is Chapter 7 Bankruptcy, and do you qualify to benefit from its protection? Determining whether to file Chapter 7 Bankruptcy is a daunting task and one which should only be undertaken after careful consideration. At Marzola & Ruiz Law Group, we offer an initial consultation, absolutely free-of-charge. To schedule your consultation, call (702) 707-4878. Please continue reading below to develop a better understanding of Chapter 7 Bankruptcy and the protections it affords those who feel seemingly overwhelmed by debt.
WHAT ARE THE BASICS OF CHAPTER 7 BANKRUPTCY?
During Chapter 7 Bankruptcy proceedings a bankruptcy trustee will assemble and liquidate a debtor’s assets, and then distribute the money to his/her creditors in accordance with the provisions of the Bankruptcy Code. This is done to make the creditors whole, though most will only receive a portion of the debt that is owed to them. Certain assets may be exempted or protected during the proceedings. These include, but are not limited to, a primary residence, a motor vehicle (up to a certain value), pensions, and household goods and clothing (up to a certain value).
WHAT IS THE PROCESS TO FILE CHAPTER 7 BANKRUPTCY?
To successfully petition for Chapter 7 Bankruptcy protection the following items must be prepared: a petition requesting protection, a schedule of assets and liabilities, a schedule of current income and expenditures, a statement of financial affairs, and a schedule of executory contracts and unexpired leases.
In addition, debtors may be required to provide a certificate of completion for a credit counseling course, proof of employment income, and the most recent year’s tax returns. This information will be reviewed by the bankruptcy trustee and a determination will be made. Of course, this is a very simplified explanation of the proceedings. There are several considerations to be made prior to completing this process. For instance, if you are married, spouses can file jointly or separately. This is yet another reason why retaining qualified legal representation is paramount prior to moving forward.
Filing for Chapter 7 Bankruptcy protections can immediately put a halt to wage garnishments and afford you the opportunity to reset your financial affairs and start anew. However, retaining qualified legal representation is paramount if you want to successfully navigate the complexities inherent to U.S. Bankruptcy Code. Do not gamble with your legal representation, call Marzola & Ruiz Law Group today at (702) 707-4878.