Common Questions About Chapter 7 Bankruptcy

If you have been thinking about filing for bankruptcy, you likely have a lot of questions about the process. This is no walk in the park, especially considering all the paperwork involved. Still, it is often the best option to file bankruptcy.

Are you still afraid of the process? Here's what you need to know before you begin.

What Types of Debts Can You Discharge?

When you file for bankruptcy, you can discharge many debts, including unsecured credit card debt and personal loans. You can even discharge some medical bills. You may be able to discharge a mortgage as well, but the property is typically repossessed. However, there are some debts you typically cannot discharge, like child support and student loans. You also cannot discharge lawsuits

How Does Chapter 7 Bankruptcy Differ from Chapter 13?

You may still be confused about which type of bankruptcy you should file. There are two types of ways to file, and each has different benefits and consequences.

For example, you can file Chapter 7 to wipe out debts in a matter of months. You will work with a trustee who will sell the property that can be sold, and you must meet a specific income requirement for this to work. Alternatively, you might have to file Chapter 13, which allows you to set up repayment plans with each creditor. The plan will last a few years.

Why Does the Court Appoint a Trustee?

Immediately after you file for bankruptcy, the court will assign you a trustee. This person is in charge of reviewing your current financial situation and helping you move forward with a plan. They will help you understand which property you will be forced to sell or report, and they will help you discharge debts that can be discharged.

How Can You Qualify for Chapter 7?

You can qualify for Chapter 7 bankruptcy if you meet specific requirements. For example, you must meet income requirements over the course of the last few months, and you must not have filed for bankruptcy within a specific amount of time.

Should You Get Professional Help?

It is always a good idea to get professional help if you are considering Chapter 7 bankruptcy. The process can be confusing, but a lawyer can help you make the best decision for your finances and your future. Consult with an attorney today to see if bankruptcy is a good option. They can provide more information regarding Chapter 7 bankruptcy