The term “Chapter 7 bankruptcy” is a term that is thrown about a great deal in the media, but clear and concise explanations of the term are usually not offered. Because of this, there is some confusion as to what exactly chapter seven bankruptcy essentially is and this very often leads to people seriously needing to know some How To File Chapter seven Bankruptcy specifics before they get involved!

Having to go through the proceedings necessary in bankruptcy is the last thing people want to do. However if their debts add up to more than what they have coming in sometimes this is sadly unavoidable and getting into self learning into how to bankruptcy filing comes highly recommended despite how ugly it seems.

There isn’t just one kind of bankruptcy proceeding, in fact there are a number including chapter 7 (the focus of this article) and Chapter 11.

Defining chapter 7 bankruptcy for all

When somebody goes through the process of chapter 7 bankruptcy, according to United States of America law they are essentially liquidating all assets (that are not legally exempt from liquidation) so they can pay back their creditors.

Chapter 7 is an option open to individuals, businesses, partnerships and corporations. Chapter 7 bankruptcy is however different for individuals in that they have open to them a special extra clause in the bankruptcy filing framework. This extra clause for the individual is commonly known as a discharge. In essence what this discharge entails is the opportunity of freeing the individual from a host of certain debts.

The first things one must do when filing chapter 7 bankruptcy: Generally speaking to file a chapter 7 bankruptcy one mast supply the courts with copies of their: tax returns, contracts of an executive nature, statements of financial affairs, all proof of liabilities and assets as well as documents to prove one’s current income and necessary expenses.

For individuals there are additional items that must be provided to the court as well. As an individual you can expect to have to supply: copies of credit counseling reports and repayment plan programs, employer payments and statements of income, interest payments on student loans, etc.The information in this document is very brief and general, if you need to find out more about chapter 7 bankruptcy and others, a good place to start would be with the links in this article and also with the US courts website. However, remember filing for Chapter 7 protection by yourself is not advised, you should get professional help from a lawyer.

Tagged with: • • • • •

Like this post? Subscribe to my RSS feed and get loads more!