File Chapter 7 Bankruptcy to Improve Your Financial Situation

1. File Chapter 7 Bankruptcy to Improve Your Financial Situation The term “Bankruptcy” refers to a legal system that is aimed at helping individuals as well as companies becoming unable to repay their debts. Chapter 7 is the easiest, speediest, and the most common types of bankruptcy that involves liquidation of property in return of getting relief from certain types of debts. It is for this reason, that it is also known as "liquidation" or "straight" bankruptcy. This chapter is made for those indebted individuals who are facing financial challenges, and are thus, finding it difficult to repay their debt. Before you can file for Chapter 7 bankruptcy, you need to pass a test called Means Test, where you will be tested for qualification for this kind of liquidation. It is essential to understand that the objective of Chapter 7 bankruptcy is to get relief from debts you have from your banks. However, in the event that Court discovers that you had committed some fraud in the past, then you may not be able to obtain benefit from this special kind of bankruptcy. With Chapter 7 bankruptcy you can get relief from different sorts of debts, for example Mastercards, cosmetic procedure bills and other obligations of comparative nature. One thing that you need to know before making your mind to file Chapter 7 bankruptcy is that you are normally required to give up specific sort of property, in exchange of becoming debt-free. Under Chapter 7, a trustee is delegated to sell all the properties that are not exempted, and to utilize the returns thus obtained to pay back the creditors. An individual who files for Chapter 7 bankruptcy is permitted to keep certain belongings, and does not need to pay certain debts, as decided by the court. A release of certain debts is commonly allowed to indebted individuals; however, it may be denied or repudiated by the court, in light of certain offenses committed by the borrower, such as an account holder's failure to reveal all his properties during the proceedings of the bankruptcy case.

2. It is important to use the services of a qualified San Jose Bankruptcy Attorney to help you file Chapter 7 Bankruptcy in the correct manner. If you choose to do so without a legal advisor you may end up with a case giving a wrong projection of your financial state. Hence, it is imperative to talk to a knowledgeable bankruptcy lawyer holding sufficient experience in the field to put you on the right track for availing benefits from such a facility. A responsible attorney will tell you about the right process of filing for such a bankruptcy while enlightening about its impact on your future credit score. It is worth mentioning that though you get relief from most kinds of debts under Chapter 7 bankruptcy, yet there are certain debts that are not going to be cleared out. As an end-result of this, you will be required to give up a portion of your property to become completely debt-free.