Chapter 7 bankruptcy is a process of dismantling certain assets. You give permission to a trustee to convert all your non-exempt assets into cash. They then distribute these to your creditors. When the process is over, you receive a discharge for those debts in question.
Don't be upset like this women with broken piggy bank. There are times when this must be done.
Filing for chapter 7 bankruptcy can be a very devastating proposition for many people. Finding yourself in a disastrous financial situation causes much distress from which some people feel they may never recover.
It means that you will be turning all your possessions over to the courts to dispose of to help pay creditors. In order to better understand the benefits of this extreme step, you have to be able to get your hands on chapter 7 bankruptcy information.
Before deciding that this is what you want to do, you should have first exhausted all other options. To do this it will be necessary to understand just how you are currently dividing up your income.
If after totaling up all debts, and subtracting those from your total income you come up with a deficit, or very little left over, it may be time to see a bankruptcy attorney. If, on the other hand, you have a substantial amount left over you just need to seek the services of a qualified financial counselor to help you learn how to spend money wisely.
Many people feel that it is below their dignity to turn loose of anything they own, but this may be a self-defeating attitude. While no one wants to give up property they have spent years paying for, staying in a state of financial flux is not good either.
The law allows individuals who find themselves in financial distress to dispose of debt by filing chapter 7 bankruptcies. Even though this can be very distasteful, it offers the opportunity to go on with life without having debt collectors hounding them all the time.
Debt happens, and sometimes it happens through no fault of your own because of the loss of a partner through divorce or death. You should not fear getting you life back.
First time home buyers that must file this type of bankruptcy, should consider waiting to buy a home. Or consider credit repair first, so you can proceed in buying that wonderful home. If you feel you have no choice, that is understandable. Learn what to do after bankruptcy to build your credit back up and then purchase that first home.
Perhaps you would rather investigate credit repair instead of filing. This page gives the useful tips on repairing your credit yourself.
If you have already filed and want to know what to do next, credit after bankruptcy has some very useful tips.
Would you like to know what alternatives to bankruptcy there are?
Perhaps you have more questions. Have a Question is a great place to ask questions. Remember that I'm not a legal expert, but I can help with your credit questions before and after bankruptcy.
Disclaimer: This information is not provided for legal advice or opinion, but is for general information only. Since laws vary from state to state, seek the help of a professional in your area for any legal advice.
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Aug 05, 19 10:44 PM
Hi Help please! I am a first time home buyer, buying a home with my fiance'. He is selling his home currently on the market for $125K with no contingencies.
Apr 15, 19 12:36 PM
When buying a home out of state, should we wait for employment contracts? Or can we use our current state's bank? Find the answers here.
Apr 15, 19 12:13 PM
Will bankruptcy affect my mortgage approval? Can I still buy a home? Find the answer to these and more on this page.
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