One of the problems facing many Americans after the market crash in 2008 is the prospect of insurmountable debt and its consequences. This problem has many people confused and worried. The main cause of debt has been the loss of employment and the resulting loss of income. In addition to that unforeseen financial difficulties such as a serious medical problem or illness have contributed to this which is why chapter 7 bankruptcy filing is good to know about.
What can one do to erase these seemingly insurmountable debt problems? One solution is to talk with a bankruptcy attorney to see if you qualify for a chapter 7 bankruptcy filing to liquidate your debts and get a fresh start.
An appointment with an attorney specialist in necessary as bankruptcy law has undergone some major changes. One of the first criteria you and your attorney will go over is if your income to debt ratio qualifies you to file for Chapter 7 protection. In most states in order to qualify the filer's income must be equal to or fall below the median income of that state. If the filer's income is above the median the court may require you to take a means test to see if you can qualify. Once you pass this test the filer must attend a credit-counseling course prior to filing. Once this course is completed you may file your paper work with the court for the Chapter 7 bankruptcy. Once the filing is complete an automatic stay against all creditors is put into effect. What this accomplishes is that all creditor attempts at collection or repossession are stopped. Liens and threatened seizures halt along with wage garnishments and lawsuits as long as the bankruptcy process proceeds unimpeded.
As the bankruptcy proceeds the court appoints a trustee to over see the process. The trustee's job is to ensure that the debtor files the proper paperwork and to also determine whether the sale of any non-exempt property of the debtor will produce enough income to satisfy the creditors. In bankruptcy there are two classes of property, exempt and non-exempt. The exempt status generally applies to cars up to a certain value, personal property, work equipment, clothing, wages, and other miscellaneous items. Since these items can vary it is important to consult with you attorney to get the facts. The other thing to remember is that there are some debts that cannot be extinguished these include child support, most tax debt and student loans.
One important part of the process is the creditor meeting; your trustee schedules this meeting. At the meeting, if a debtor fails to attend the trustee may motion the court to dismiss the case. Other reasons for dismissal are failure to provide needed income tax returns or failure to file a current income tax return. If the trustee for any reason dismisses the case all collection activities, liens, and lawsuits that were stayed under the bankruptcy rules can resume. If everything is done properly the case continues to its completion and all eligible debts are expunged from the record and the debtors have a new lease on life free of overburdening debt.
Looking for more information on chapter 7 bankruptcy Alabama? Visit here for more information: http://brentwdavis.com.
Article Source: http://EzineArticles.com/?expert=Abraham_Avotina
Article Source: http://EzineArticles.com/7717117
What can one do to erase these seemingly insurmountable debt problems? One solution is to talk with a bankruptcy attorney to see if you qualify for a chapter 7 bankruptcy filing to liquidate your debts and get a fresh start.
An appointment with an attorney specialist in necessary as bankruptcy law has undergone some major changes. One of the first criteria you and your attorney will go over is if your income to debt ratio qualifies you to file for Chapter 7 protection. In most states in order to qualify the filer's income must be equal to or fall below the median income of that state. If the filer's income is above the median the court may require you to take a means test to see if you can qualify. Once you pass this test the filer must attend a credit-counseling course prior to filing. Once this course is completed you may file your paper work with the court for the Chapter 7 bankruptcy. Once the filing is complete an automatic stay against all creditors is put into effect. What this accomplishes is that all creditor attempts at collection or repossession are stopped. Liens and threatened seizures halt along with wage garnishments and lawsuits as long as the bankruptcy process proceeds unimpeded.
As the bankruptcy proceeds the court appoints a trustee to over see the process. The trustee's job is to ensure that the debtor files the proper paperwork and to also determine whether the sale of any non-exempt property of the debtor will produce enough income to satisfy the creditors. In bankruptcy there are two classes of property, exempt and non-exempt. The exempt status generally applies to cars up to a certain value, personal property, work equipment, clothing, wages, and other miscellaneous items. Since these items can vary it is important to consult with you attorney to get the facts. The other thing to remember is that there are some debts that cannot be extinguished these include child support, most tax debt and student loans.
One important part of the process is the creditor meeting; your trustee schedules this meeting. At the meeting, if a debtor fails to attend the trustee may motion the court to dismiss the case. Other reasons for dismissal are failure to provide needed income tax returns or failure to file a current income tax return. If the trustee for any reason dismisses the case all collection activities, liens, and lawsuits that were stayed under the bankruptcy rules can resume. If everything is done properly the case continues to its completion and all eligible debts are expunged from the record and the debtors have a new lease on life free of overburdening debt.
Looking for more information on chapter 7 bankruptcy Alabama? Visit here for more information: http://brentwdavis.com.
Article Source: http://EzineArticles.com/?expert=Abraham_Avotina
Article Source: http://EzineArticles.com/7717117
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