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Should I File a Chapter 7

In order to file a Chapter 7 bankruptcy you have to meet some specific criteria. If you have enough to repay your debt you may be forced to file a Chapter 13 bankruptcy instead. Chapter 7 is the most common form of bakruptcy that is filed for in the United States. Any individual that has a place of business or owns property may file for a Chapter 7, also known as a straight bankruptcy or a liquadation.

A Chapter 7 stays on one's credit report for 10 years. When filing a Chapter 7 the individual is allowed to keep specific exempt property. Most real estate morgates and car loans survive the filing. Other assets are liquated in order to repay creditors. There are many common exemptions to filing a Chapter 7. These typically include income tax less than 3 years old, child support payments, and student loans. So if you're looking to file bankruptcy in order to avoid having to pay back child support or student loans, you may find yourself out of luck.

You cannot file a bankruptcy if you have previously received one. This means if you had a Chapter 7 within the last 8 years or a Chapter 13 within the last six. Also keep in mind if you have had a Chapter 13 or 7 case dismissed within the last 180 days, because you violated a court order, or if you requested a dismissal after a creditor asked for relief from the automatic stay.

Filing for bankruptcy can be a difficult thing to determine. If you're thinking of filing for bankruptcy you should consider the difficulties you may have when it comes to trying to open more lines of credit in the future. Filing bankruptcy should be a last resort for anyone that is in substantial debt. Consider that even though house can car loans usually survive bankruptcy, that it will be very difficult if you should need to get another any time in the future. There are quite a bit of criteria you have to meet in order to file bankruptcy. They check and see what your average monthly income is and decide whether or not that you are able to repay your debts. This is to make sure that you do not have the means to repay your debt and are simply trying to abuse the bankruptcy system.

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