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Bankruptcy Filing Chapter 7

When financial obligations become overwhelming and individuals or businesses are unable to make even minimum payments, bankruptcy may be the only option. Even though bankruptcy laws changed in 2005, bankruptcy is still a viable option for many individuals and businesses that find themselves in financial straits. If relief from one's debt cannot be found through alternative means, such as debt consolidation, individuals and businesses may wish to consult with Chapter 7 bankruptcy attorneys.

Attorneys familiar with bankruptcy laws and processes can help the individual or business evaluate their financial situation and determine how best to proceed with their bankruptcy petition. Those determined to file bankruptcy should not do so without the legal guidance and assistance of experienced Chapter 7 bankruptcy lawyers.

Exempt Property vs Non-Exempt Property

With Chapter 7 bankruptcy, an individual's or business' assets will be liquidated. The proceeds from this liquidation will be used to satisfy their debts. Some of the property owned by the individual or business will be considered exempt while other items will be considered non-exempt. Non-exempt property will not be protected against liquidation. Examples of exempt and non-exempt property include:

Exempt Property

• Automobiles
• Necessary clothing, household good, and furnishings
• Household appliances
• Pensions
• Jewelry
• Tools of the trade
• Public benefits

Non-Exempt Property

• A second home or automobile
• Valuable collections (stamp, coins)
• Financial resources such as investments, cash, and bank accounts
• Musical instruments of value

While these are not meant to be exhaustive lists, they do provide an idea of what type of property will be considered exempt and non-exempt. Attorneys at Chapter 7 bankruptcy law firms can provide individuals and businesses with more detailed information in regard to exempt and non-exempt property as well as what filing for Chapter 7 bankruptcy will mean for them.

Requirements for Filing Chapter 7 Bankruptcy

Because the bankruptcy laws were amended in 2005, there are additional requirements that individuals and businesses must fulfill before filing for bankruptcy. At least six months prior to filing for bankruptcy, a credit counseling session must be completed. If the conditions of the means test are not met, individuals and business will have to file under another bankruptcy chapter. Chapter 7 bankruptcy lawyers can help individuals and businesses ensure they have completed and met all requirements before filing a bankruptcy petition with the courts.

Hiring a Bankruptcy Attorney

Even though bankruptcy may appear cut-and-dry, the process of bankruptcy can be quite complex. Chapter 7 bankruptcy attorneys will have a comprehensive understanding of bankruptcy and can provide the expert legal assistance individuals and businesses need. The attorneys at Chapter 7 bankruptcy law firms also understand the sensitive nature of bankruptcy, and they will endeavor to treat each and every bankruptcy case with the dignity and respect it deserves. For assistance with a Chapter 7 bankruptcy case, do not hesitate to contact a Chapter 7 bankruptcy lawyer.

Did you know?
Credit counseling will help individuals and businesses determine if any other methods of debt reduction are available to them or if bankruptcy is truly their only option.
A means test is also now required to determine if individuals and businesses will be eligible for file Chapter 7 bankruptcy.