The Pros and Cons of Chapter 7 Bankruptcy – Community Legal Services

alled liquidation bankruptcy, could offer a way to help the financial situation and assist you in getting back on your foot. What exactly is liquidation bankruptcy? This method is to eliminate all of your debts that are unsecured. Every debt not secured by collateral or any other property. Unsecured debts include credit card bills and medical expenses. Personal loans also come under the umbrella of unsecured debts. The debts are able to be settled by Chapter 7 bankruptcy.

The issue is: You could lose assets may be lost. The trustee assigned to your case will go through each of the assets that you declared in the papers that you submitted. They’ll decide if you are in possession of any assets that may be sold for the purpose of paying back your creditors. But, there are exceptions to this rule. The majority of states have exemption regulations that will protect some of your possessions, such as cars, retirement accounts, as well as household items. In order to pay back your creditors, assets not falling into these categories may be taken from your custody.

This is just a brief overview on Chapter 7 Bankruptcy. The following video provides pros and cons of Chapter 7 Bankruptcy. p1buhsaadm.

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