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By Sean Goudelocks
It is expedient for you to understand the bankruptcy information first before choosing to file for bankruptcy – whether it is chapter 7 or chapter 13 of the bankruptcy laws. It is useful to consult with a proficient financial expert or a bankruptcy lawyer to get bankruptcy information.
The amount of danger and the grave consequences of insolvency have been reduced to a certain minimum with the introduction of the new bankruptcy law of today. There are primarily two chapters, specifically the chapter 7 and the chapter 13, by which you can file bankruptcy. The purpose of this article is to provide you with the few details about the chapters that will be of help to you in case you do not have necessary information on bankruptcy. Since chapter 7 is the most prominent among the debtors, let’s take a look to see and understand it before making financial decision.
If you are willing to surrender your assets, then you can be rest assured that the court can help you declare chapter 7 of the bankruptcy laws. With the permission of the court your assets will be liquidated by the creditor. Nevertheless, to determine the precise chapter you have chosen, you must file a petition at the court. With the necessary information given by top financial experts and bankruptcy attorneys, chapter 7 of the bankruptcy laws is often referred to as liquidation bankruptcy. This means that through this law, you can pay back your creditors by selling some of your assets which is equal to the value of debt you owe.
In order to file for chapter 7 of the bankruptcy laws you should be aware of how much it does cost. If we combine all the costs that will be sustained while filing for the chapter 7 of bankruptcy, it will be a total of $299. All this totals the filing fees as well as the documentation and the paperwork. So, when once a petition is filed at the court, the case will take a duration of six months to be completed. But you need to understand that the legal procedure of filing bankruptcy can be quite complicated and complex if you are a new debtor or not used to it. However, it would be useful and beneficial to you to seek the necessary information before making critical financial decision.
One other thing you must be informed of is the time taken at the court and the way the hearings are frequented. If you decide on the option of choosing chapter 7 of the bankruptcy laws, you will be expected to visit the court once only. Nonetheless, you will be mandated to go for credit counseling before you choose bankruptcy. You need to have at the back of your mind that you are permitted to file chapter 7 of the bankruptcy laws only after the duration of 6 – 8 years of the previous bankruptcy filings.
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