3 Questions About Chapter 7 Bankruptcy You Might Have
by Veeti Lepisto
If you decide to file for Chapter 7 bankruptcy for the first time in your life, you might not understand how it works. In fact, you might have some questions about it, and you should get the answers before filing. Here are three questions to learn more about as you decide how to proceed with your bankruptcy case.
1. Why Do They Call It the Liquidation Branch?
When you begin researching Chapter 7 bankruptcy, you might discover that they call this the "liquidation branch." Do you understand why it earned this title? Lawyers call it this because of the way it works. A Chapter 7 case offers a discharge of debts with a string attached. The string is that the court has the legal right to seize qualifying assets. If you own things the court can legally take, they will take them and sell them. The purpose is to generate some cash to use to repay your creditors. The good news is that you can exempt some of your property, and in some cases, the court does not take anything from a person who files.
2. What Debts Do Not Qualify for a Discharge?
The second question to ask is about the debts that qualify for a discharge. Most likely, you will have some debts that qualify and others that do not. Some of the debts that do not qualify include alimony, student loans, child support, and tax payments. You might have others, too. A bankruptcy attorney can review your list of debts before you file to tell you which qualify and which do not. Therefore, you can make an informed decision about filing.
3. Do You Have to Go to Court?
The third thing to ask is about court. Does a Chapter 7 case require going to court? The answer is yes. You will have to go to court for a meeting of the creditors. This meeting normally occurs shortly after filing your case, and it is usually the only court appearance you must make in a Chapter 7 case. Your attorney goes to the meeting with you and assists you throughout its entirety. The meeting does not take long, but you must attend it.
After learning the answers to these common questions, you might have enough information to contact a bankruptcy attorney for a consultation visit. If you are ready for this, contact a local law firm today.
For more information, contact a bankruptcy lawyer near you.
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About Me
Several years ago, one of my best friends married the guy of her dreams. This tall, quiet man adored my friend. Almost every week during their courtship, he presented her with a beautiful, fragrant arrangement of flowers. At the time, my friend’s mom joked that her home resembled a funeral home because of all of the flowers her boyfriend sent her. After the happy pair married, they purchased a new home together and quickly began running out of money, meaning that he could no longer afford to give her the flowers she loved. They even discovered they couldn’t afford to pay the monthly mortgage. After only a few years of marriage, they filed for bankruptcy. On this blog, you will discover the ways a reputable bankruptcy attorney can help you successfully recover from financial ruin.