Consumers who have accumulated profitable assets could benefit from chapter 7 if they are facing an overwhelming amount of debt. Circumstances in life may reduce the earnings of the consumer, including disability, job loss, and divorce. After such an occurrence, the consumer should review their options for eliminating debts and preventing extensive financial hardships.
Why You Should File Chapter 7
Consumers do not face as many complexities when attempting to file chapter 7 as they would other forms of bankruptcy. For example, if they wish to file chapter 13, they must prove eligibility by presenting income statements that show their earnings are higher than the county’s median. However, chapter 7 doesn’t impose this limitation. The consumer must possess adequate properties or assets to generate funds to pay off debts only.
How Does Chapter 7 Work?
The consumer presents information about their debts and assets to their attorney. If he or she deems chapter 7 is the best option for the consumer, a claim is filed through the court. Upon initiation and approval of the case, a trustee is assigned. All titles for the properties and assets listed in the claim are surrendered to the trustee who sells them according to bankruptcy laws.
The funds generated from the sale of the assets is distributed to the creditors directly. All exempted values for these properties are returned to the claimant based on the terms of the bankruptcy case. Once all properties are sold, and the debts are paid off, the case is reviewed and discharged by the court. The entire process takes up to six months to complete.
While there are a few drawbacks for filing bankruptcy, it is an effective option to become debt free.Lawyers Marion IN can provide you with insight into the process to help you determine if it’s the correct choice for you. This includes stipulations and implications that may apply after the case is discharged. If you wish to learn more about chapter 7 bankruptcy, you can visit the website or schedule a consultation with an attorney today. If you wish to explore chapter 7, you can call Ripke Law PC to discuss your case with Lawyers Marion IN today.
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