North Dighton, MA -- (ReleaseWire) -- 04/26/2019 -- BASICS OF CHAPTER 7 BANKRUPTCY
Bankruptcy law is complex. It can be overwhelming for the consumer researching the subject to read technical legal jargon, which is why we created the Chapter 7 Bankruptcy: Seven Steps to Financial Freedom book. At Freebird Publishers, our goal is to provide readers with useful information about bankruptcy and debt that can be easily understood. In the book we have articles that focus on the basics of bankruptcy, such as exemptions, property issues, filing deadlines, and costs.
Often referred to as "straight bankruptcy," Chapter 7 bankruptcy is a process, organized under federal law, that provides consumers with the opportunity to discharge their unsecured debts. Common debts eliminated by filing for Chapter 7 bankruptcy include: credit cards, medical bills, personal loans and mortgage debts. When a Chapter 7 case is filed, all the debtor's property is temporarily under supervision of the bankruptcy court and a case trustee. Property that is considered "exempt" is retained by the debtor; conversely, property that is "nonexempt" is subject to sale by the bankruptcy trustee with the proceeds distributed to creditors. It is important to note that as a practical matter, most people can shed their unsecured debts through Chapter 7 without losing any property. A typical Chapter 7 bankruptcy case usually lasts between 4 to 5 months. At the end of the process, the bankruptcy court issues a discharge that operates as a permanent injunction preventing creditors from seeking to collect on debts that were included in the bankruptcy.
WHY IS CHAPTER 7 BANKRUPTCY SO POPULAR
Why is Chapter 7 So Popular?
The stats don't lie — Chapter 7 is the most popular way to file bankruptcy.
Chapter 7 is one of the most popular ways individuals can file for bankruptcy (the others are Chapter 13 and 11), while businesses can file for Chapter 7 or 11 to reorganize. Less common are Chapter 9, when municipalities need to reorganize; Chapter 12, which provides debt relief to family farmers and fishermen; and Chapter 15, which involve parties from more than one country.
Chapter 7 is often the preferred filing because it involves no repayment of debt. While a debtor must be prepared to lose property and/or subject it to liens and mortgages, their bankruptcy trustee will take care of gathering and selling any nonexempt assets and use the proceeds to pay creditors back. Most people who file bankruptcy can use exemption laws to their benefit and retain their property.
To qualify for relief, debtors must pass the means test if they have above-average income based on similarly situated individuals in their state. An individual also must receive credit counseling months before filing for Chapter 7 (with few exceptions) and cannot file under Chapter 7 or any chapter if a prior bankruptcy petition recently was dismissed by the court or debtor.
While individuals can file for bankruptcy with a lawyer it is getting to be common to file on your own— called filing pro se. Our new book, Chapter 7 Bankruptcy: Seven Steps to Financial Freedom is a step by step book on how to file easily for any do it yourselfer.
Much of bankruptcy procedure is technical and very straight forward. Often, there is only one way to complete a required form and only one set of rules that apply to that form. Being familiar with the legal system, people understand that one misstep can cost them their freedom. With Chapter 7 Bankruptcy, financial freedom is at stake.
The book is designed to be an all-inclusive resource guide with step-by-step instructions for people filing their own Chapter 7. It details the basic information on different aspects of federal bankruptcy laws, as well as the author's personal experience in filing a successful Chapter 7 claim.
In the book there are sample forms, schedules, and instructions needed to obtain financial freedom! In these pages there is a wealth of information and have the technical points explained in easy to follow language. Also featured is a basic explanation of the different chapters under which a bankruptcy case may be filed and answers to some of the most commonly asked questions about the bankruptcy process.
The goal of this book is to help people through all of the steps, to point out obstacles along the way and resources and finally, to provide them with inspiration and encouragement that they too can do this on their own. With preparation, patience, and perseverance, anyone can accomplish anything – including the successful discharge of Chapter 7 Bankruptcy. Anyone can follow these 7 basic steps to completing a Chapter 7 Bankruptcy and can enjoy the freedoms that a fresh start will provide.
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