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What is Chapter 7 of Bankruptcy?

Chapter 7 Bankruptcy is ideal for debtors that have huge unsecured debt. When you file for this, the trustee uses all the non-exempt assets at disposal and pays of whatever possible fraction of your debt. The remaining debt is0 discharged. Thus, you become free of debts. Laws vary from state to state and all states provide the liberty of keeping a part of your possessions. It would be best to consult a bankruptcy attorney to find the application of Chapter 7 Bankruptcy.

Am I eligible for Chapter 7 Bankruptcy?

Several schedule need to be first completed by the bankruptcy lawyer. Ones assets, income, debts, expenses, income, and other documents are listed in these schedules. It is only after this that ones eligibility can be determined. The evaluation of your income in comparison to expenditure is done by bankruptcy means test. This test decides the number of applicants who can file on the basis of their income. One should know that the eligibility is not determined solely on the basis of the debt amount. In the past, the number of those who have filed for bankruptcy has been restricted and limited. Prior to filing Chapter 7 Bankruptcy, a credit counseling class becomes compulsory.

What does Chapter 7 Bankruptcy involve?

The main steps towards application of Chapter 7 Bankruptcy are as follows.