Considering and Consulting With a Chapter 7 Bankruptcy Attorney

Apr 7 09:07 2012 Anna Woodward Print This Article

When is enough really enough? A chapter 7 bankruptcy attorney may be able to clear that question up for you.

Bankruptcy is something we all hope to never have to consider,Guest Posting but sometimes factors out of our control—or compounding interest rates—get in the way of our financial goals. There are several chapters to file under; a chapter 7 bankruptcy attorney may be a wise choice for those who are in trouble.

First, who should consider a chapter 7 bankruptcy attorney? If a business is considering filing, they'll end up ceasing operations unless a trustee is appointed. The first creditors to be paid are fully secured ones; they have the legal right to any collateral. For large companies or corporations, this may mean parts of the company get sold to others, while smaller companies may see everything completely dissolved and assets sold off to pay creditors. Sole proprietorships may be eligible for bankruptcy discharge. If you are an accountant or attorney, you may be able to navigate this complex process alone. Those with little to no legal or accounting experience may find it overwhelming, and even those with professional backgrounds in those areas may want a second opinion.

Individuals who are having financial hardships may also consider filing. Laws on exempt property vary from state to state. Some exceptions are child support and student loans. Anyone who files a chapter 7 will have such present on their credit report for a decade after filing. If a person is capable of paying back some or all debts with disposable income within 5 years, they may need another chapter; Chapter 13 covers bankrupt people who can complete repayment within 5 years. This will affect your ability to obtain credit, but this is slightly different for everyone. That's why a chapter 7 bankruptcy attorney is recommended. This is something that can be hugely affected be the smallest error in filing or order of actions.

There have been changes to the laws regarding this method of action in 2005; these were created to prevent and discourage abuse of the filing process. There's now a means test, new exemption and liens rules, along with a few other changes. The means test assesses a debtor's disposable income against their debt, which is how their ability to pay is measured; this does not apply to those who make under the average income in their state. As far as extensions go, the laws are now different regarding which state a person can file in and placed a cap on homestead exemption claims. Liens have been better defined for bankruptcy.

Speaking of the means test, it's not a traditional "test" but rather a way to make sure chapter 7 is what you really need. This filing requires income under a certain amount, no previous discharges within a legally stated time frame and it requires that you haven't raised any concerns by lying or cheating creditors.

In conclusion, this is a complex legal procedure. It seems easy on paper, but it's so extremely imperative that you research your options in order to make this as smooth and painless as possible. Consult a chapter 7 bankruptcy attorney to learn more.

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Anna Woodward
Anna Woodward

When you're in dire financial straights and are considering consulting with a Chapter 7 bankruptcy attorney Charlotte locals can point you to a compassionate legal professional. Get more info at

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