A chapter 7 bankruptcy lawyer is needed when filing for this type of bankruptcy. Chapter 7 is also referred to as straight bankruptcy and involves having to appear in front of a judge to have any unsecured debts they have accumulated, discharged.Chapter 7 bankruptcy can be filed by either a business or an individual.
If someone is having a hard time determining whether or not they qualify for chapter 7, they are advised to call a bankruptcy lawyer. Filing for this type of bankruptcy is a very complicated process and one which really does require a lawyer. Also, a lawyer will know when it is the right time for someone to file for chapter 7.
When a business files for chapter 7 they must immediately stop all operations. A trustee is then appointed and given the responsibility of investigating the finances of the business. They are responsible for selling the business’s assets and then paying back the creditors the business was working with. If it was a large business, divisions of the company are often sold to other businesses during the process of liquidation. In the case of a business, there is no bankruptcy discharged. In this case the business is simply dissolved.
When an individual files for chapter 7 they also need to consult a lawyer in order to make the process go more smoothly. In this type of bankruptcy case, the person filing is entitled to retain certain properties that are exempt from chapter 7. Any other assets the person may have had must be sold by the trustee, who must then pay back the person’s creditors. Not all debt types are dismissed in a chapter 7 bankruptcy filing. Student loans, property taxes and child support are all exempt, meaning that the person who filed does not get out of paying. Income taxes are also exempt if they are less than three years old. If the peson filing has committed a crime in the past and they have fines to pay as a result of that crime, those fines will not be wiped out as a result of filing for chapter 7. Divorce settlements are not wiped out due to chapter 7 either.
After an individual has filed for chapter 7, the filing will appear on their credit report for 10 years.When one files for chapter 7, they have to be careful that their filing is classified as “abusive.” If the government determines the person filing can afford to pay at least some of their debts they can prevent the filing from actually going through.
Since more people have attempted to file for chapter 7 bankruptcy even if they don’t need it, the U.S. bankruptcy code has been changed to make it harder to qualify.
A chapter 7 bankruptcy lawyer can help someone make the process of filing a little bit easier. They can explain the procedure and answer any questions the debtor may have about their financial future after declaring chapter 7 bankruptcy.
Contact your Local Bankruptcy Lawyer Today.