When you file a petition for Chapter 7 bankruptcy, any non-exempt assets may be liquidated and sold to repay creditors. Depending on your state of residence, you will refer to a list of either federal or state exemptions to determine the amount various types of assets that is exempt, or safe, from liquidation.
It is then extremely important to provide an accurate assessment of the true value of your property to the trustee in charge of the case.
- What is the difference between chapter 7 and chapter 13 bankruptcy? Do you lose all your possessions if you file for bankruptcy? How do you discharge your debts? These are just a few of the questions you must consider when you think about filing for bankruptcy. If your finances get all out of sorts, it may be time to file for bankruptcy, but in order to navigate the process of filing for bankruptcy and get your finances in order to avoid future problems, you should at least consider enlisting the help of a bankruptcy lawyer such as Jeffrey S.
- You already know that having a bankruptcy on your credit report will affect your ability to finance a car or get a mortgage on a house. But can it keep you from renting an apartment? Unfortunately, it might. A survey conducted by one of the major credit reporting bureaus shows that almost one in two landlords named the credit check one of the top three things they used to make a decision about whether to rent to a specific tenant.
- Typically when you file bankruptcy, your income and savings becomes part of your bankruptcy estate. The trustee will take any non-exempt funds and use them to pay off your creditors. Most of the time, social security disability income is protected from this type of trustee action by both bankruptcy laws and the Social Security Act. However, there are two times when the trustee can take that money. Here's more info about these exceptions.
- Coming to the realization that you need to file a Chapter 7 bankruptcy usually doesn't happen suddenly. Typically, people in financial distress severe enough to contemplate bankruptcy spend many sleepless nights worrying about how to pay their bills and they avoid answering phone calls because they may be from creditors. During this time, they may unknowingly make mistakes that could cause problems when they do file for bankruptcy. If you are beginning to realize that a bankruptcy filing is on the horizon, you'll need to avoid doing the following things.