Consumers have the option to file under two chapters of bankruptcy law, known as Chapters 7 and 13. These chapters are most suited to the needs of individuals and married couples, so almost everyone who files for bankruptcy goes through either. Many think that they should file for Chapter 7 Bankruptcy in Middletown, CT because common lore makes it sound as if it’s the easier of the two and gets you finished sooner than later. However, even though it typically lasts about four to five months, it is no less complicated than a Chapter 13. It’s always best to talk to someone like Jefferson Hanna Law about the workings of Chapter 7.
All chapters of bankruptcy have a common theme of requiring the petitioner to repay their creditors in some form. During a Chapter 7, the petitioner is supposed to turn over assets of value to the court for the trustee to sell. The monies realized from the sale are filtered through the bankruptcy and sent out to creditors in order of their importance. However, not everyone has assets that are sellable. In fact, many people who go through Chapter 7 have very little to their name, and is why they wind up filing in this chapter.
One aspect of Chapter 7 is the exemptions. Exemptions allow you to set aside your assets and keep them out of reach from the court. This is entirely legal, and the exemptions cover a wide swath of items you possibly own. In the event that you have a car you are making payments on, it is automatically exempt as there is no value on it. If you own your car outright, but it’s basically a beater, the court will have little interest in it and its value may wind up being such that it’s completely exempted.
It may be possible to go through bankruptcy and keep what you own because it has little to no value. However, it’s always best to work with an attorney so you don’t get yourself into trouble with the court. You need to be completely honest about what you own, hide nothing and let the chips fall where they may in order to get relief from your creditors.