After months of trying to regain control of debt, it is easy to become discouraged. It seems as if nothing that the debtor tries seems to make much of an impact. With financial issues beginning to escalate, the time has come to consult with an attorney and determine if filing for Chapter 7 Bankruptcy protection is the most practical solution.
What Does a Chapter 7 Involve?
A Chapter 7 Bankruptcy is one of two options for personal bankruptcy. With this approach, the court will look closely at the debts owed and the assets that the debtor has in hand. The goal is to determine if there is actually some way that the debtor can honor those debts in full. If that is not the case, any assets that the court deems eligible for sale will be sold, and the funds used to partially settle those outstanding debts. After allowing creditors to have their say in the matter, the remainder of the debts are usually discharged in full. This effectively provides the debtor with the chance to start over financially without a massive amount of debt hanging over his or her head.
Can Anyone Qualify for This Type of Protection? It is important to remember that not everyone will meet the requirements for this type of bankruptcy protection. This is where the work of the attorney proves invaluable. The attorney can review the financial condition of the client and determine if he or she meets the criteria set by current bankruptcy laws. Assuming that the client does qualify, the attorney can take care of preparing all the necessary documents to present to the court.
What Constitutes Eligible Assets?
The court may determine that certain assets are considered eligible for sale, with the funds distributed to the creditors. Typically, these are assets that the court and current laws deem as not being necessary for the debtor to maintain a basic standard of living. For example, the vehicle that the debtor uses to get to and from work is likely to be considered ineligible, but any other vehicles may be ordered sold. Bankruptcy is not the best fit for everyone. Talking with an attorney makes it easier to identify possible solutions, and learn what they entail. With a little luck, the right solution will be found and the debtor will have a chance to get a fresh start. Get is touch with us for more info.
