Chapter 7 bankruptcy is one of two more common
forms of bankruptcy
filings. The biggest positive of chapter 7 over chapter
13 is that it’s typically less expensive to file
and there’s no requirement to create a plan to pay debts
involved with the bankruptcy. In some cases, the fee may be
waived entirely. That decision is based on the income as compared
to the value of the property involved.
Arguably, one of the reasons most people are ready to seek
bankruptcy is to put an end to the phone calls, letters and
visits from collection agencies.
Once you file bankruptcy, those lenders will only get their
money through court order and you’re no longer going
to hear from them
Some important points about chapter 7 are:
- Only individuals qualify. Businesses, companies, corporations
and limited liability companies aren’t eligible to
file chapter 7.
- If you’ve failed to meet previous court orders,
you probably aren’t eligible for file for chapter
7.
- You may lose property associated with the bankruptcy filing.
- Married couples may file jointly but the property may
not be divided, even if only one is filing for bankruptcy.
That means your spouse’s income will be considered,
even if the two of you have kept separate checking accounts
and debts.
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