In today’s vastly changing economic conditions, financial crisis has become very common. To meet the unforeseen financial requirements, we have to do what not? Loans are the mostly preferred choice but this is very essential to understand that debt can lead to the Bankruptcy and various other financial consequences. But, what if we have to file the bankruptcy under the Chapter 7 bankruptcy or 13 Bankruptcy Law? To get the answer of this question, we have to understand the whole concept of Bankruptcy, who can file for bankruptcy and how to file bankruptcy.
There are three chapters under which bankruptcy can be filed:
i. Chapter 7 Bankruptcy Law
ii. Chapter 13 Bankruptcy Law
iii. Chapter 11 bankruptcy Law
There are the different tests and criteria to define the type of bankruptcy. Based on the results of the means test Bankruptcy is decided.
Who can file for bankruptcy?
Under Chapter 7 Bankruptcy Law
• The filer must have a property, house, business place in US.
• In last six years, filer shouldn’t be allowed for discharges under Chapter 7.
• Within last 180 days, filer’s bankruptcy file must not be dismissed.
Under Chapter 13 Bankruptcy Law
• The filer must have the regular income.
• Must owe the unsecured debt of less than $250,000, and secured debt of $750,000.
• The debt amount must be non-contingent.
• The debt amount must be fixed and free of any conditions thereof.
Under Chapter 11 Bankruptcy Law
• This is reserved for the business related bankruptcy only in certain cases individuals can file under Chapter 11 bankruptcy.
• The entity must not be the government unit, must be corporate or a limited firm.
If, once Bankruptcy is declared, the debtors can address to the following three Debt Relief options:
i. Filing Bankruptcy
ii. Debt Settlement
iii. Credit Bankruptcy Counseling
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This is important to state here that out of the three types of Bankruptcies most of the bankruptcies are filed under Chapter 7 Bankruptcy Law. Hence, this becomes very important to know how to file for Chapter 7 Bankruptcy. To get the answer this question, please read below:
To file the bankruptcy under Chapter 7 Law following steps must be followed:
• First of all, concern with Bankruptcy attorney.
• Go through the sessions of Credit Bankruptcy Counseling and get the certificate.
• File a petition along with all the documents and Bankruptcy Counseling certificate.
• Furnish the copy of Pay Check Stubs to the bankruptcy trustee and copy of latest tax returns.
• Attend the creditors’ meeting, where you can discuss the matters with lenders.
• Wait until the final decision is declared that your debts are discharged or not.
We can sum up with that this is not difficult to file the bankruptcy if you have proper guidance and know what to do and what not to do. Let www.bankruptcyonly.com be your debt relief guide.
Contact info:
Johnathan Y. Bostic
1534 Wolf Pen Road
San Mateo, CA 94403
Web:http:// www.bankruptcyonly.com
