A Few Little Known Facts About Chapter 7 Bankruptcy

If you are facing economic problems and are looking for a fresh financial start, you should file a cause under Chapter 7 of bankruptcy law. This type of a bankruptcy case will wipe out all debts through a liquidation process where a trustee appointed by the court will supervise the auctioning of your non-exempt properties. The money obtained by liquidating your assets are used to pay the creditors. The money left after all dues are cleared is returned to you. If there are any debt left unpaid, it will be discharged by the court of law.

There are many people who file a Chapter 7 bankruptcy case without having a proper understanding of the consequences and benefits. You should not do the same mistake. Consult with an experienced bankruptcy attorney or gather relevant information before you decide to file such a case. Given below are a few little known facts about Chapter 7 bankruptcy, which will help you to make the right decision:

* Is it important to run a credit check before filing a case?

It is very important to have a copy of your personal credit report while filing a case of bankruptcy. Generally, the attorney you hire will do the credit checks on your behalf. A credit report will not just let you have a practical perspective of your economic situations but, will also help you to ensure that all your creditors are listed.

* What type of bills and debts are discharged?

You should have realistic expectations from a Chapter 7 insolvency case. Remember, not all debts are discharged under the Chapter 7 bankruptcy law. Debts related to – taxes, child and spousal supports, out of willful or malicious misconducts, liabilities in case of personal injury or wrongful death cases, non-discharged loans from a previous bankruptcy case, and educational loans will not be discharged by such an insolvency case. Only the loans that are secured will be discharged.

* Is there a need to hire a bankruptcy attorney?

There is definitely a need to hire the services of a bankruptcy attorney. Such a professional will not just accomplish the necessary paperwork on your behalf, but, will also see that there are no mistakes in your credit reports or in filing a case at the court of law. S/he will also represent you at the court. In addition to that s/he will help you to manage your finances well. S/he will help to stop harassing calls from the creditors.

So, you should make it a point to hire the services of an attorney who is experienced in dealing with cases underIndianapolis is where a few of the best bankruptcy lawyers are based.

 

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