Importance of Filing for chapter 7 Bankruptcy

by | Jun 19, 2013 | Lawyers

Chapter 7, also commonly referred to as liquidation bankruptcy, is a bankruptcy code chapter set up in Title 11 of the US code. This chapter was intended to help people who are heavily burdened by debts to have a fresh start in life. Get chapter 7 Bankruptcy Vancouver plan to help you pay off your debts. Chapter 7 allows a trustee to sell all non-exempted properties of the debtor and distributes the money obtained from the sale of the assets to the creditors.

Before filing for bankruptcy, Seek Attorney services to advise you on the best bankruptcy option as per your situation or financial state. The procedure involved in filling a bankruptcy petition is complex and therefore you need the help of a professional who understands bankruptcy law, as well as help you handle all the legal formalities involved in filing chapter 7. The applicant must prove to the court that he/she is not in a position to repay his/her debts. The judges look at bank statements and tax returns to establish whether the applicant qualifies to file for bankruptcy.

The means test is commonly used to ascertain whether an applicant is unable to repay his/her debts. The test analyzes the applicant’s income for the past six months before the bankruptcy application date, to determine whether your monthly disposable income is below the state’s median. If your application goes through, the court issues a notice to the debtor to meet the creditors and discuss the various liquidation options. Since it is understandable that everyone needs certain basic needs to survive, some assets such as a house or retirement accounts are usually protected under the bankruptcy law.

Bankruptcy laws vary from one state to another that is why you should seek attorney’s help as bankruptcy lawyers in Vancouver are well versed with the law, and can negotiate for a better settlement with the creditors and protect your property from being repossessed. Before a case can be discharged, the bankruptcy applicant must complete a financial management course with a certified provider. Get chapter 7 bankruptcy Vancouver and begin enjoying a debt-free life.

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