subject: What Can Chapter 7 Banckruptcy Do For You In Your Financial Crisis? [print this page] For quite some time now, economic downtrend is affecting the financial stability of people and business enterprises. When debt cannot be managed, you get stressed. You are bullied by- bills and credit cards. What if the letter you receive in not an ordinary plain collection letter but a more stern warning of home foreclosure, repossession and wage garnishment?
There is one viable solution to this problem - it is Chapter 7 of Bankruptcy. This so-called Chapter 7 is a law that may stop foreclosure and repossession of your residential building. But before you proceed with this process, you have to know your options.
How do you avail or even qualify for the chapter 7 bankruptcy law?
Before proceeding with the Chapter 7 process, you have to know if you qualify.
The first gauge of qualification is the means test. This computes your income, to qualify, your income must be below the state's average median income for household size similar to yours. Then after knowing you qualified under this test, you will go to the next process - taking two counseling classes. The first class should be undertaken before filing of Chapter 7 and the other class should be completed after the filing.
OK - you qualified. You successfully hurdled the mean test and you have completed the classes . So here is the process.
When have you made arrangements with your bankruptcy lawyer? You can do it once you have thought of filing one. Here, the attorney can already guide you to the pre-qualification requirements. Then after you have successfully accomplished the mean test and first class, you can file, of course with the assistance of your lawyer, your petition with the bankruptcy court. Your lawyer actually will prepare your petition. Then attend the second counseling class.
Your legal counsel will accompany you in your meeting with your creditors. Her his presence is important in these occasions because your lawyer will guide you in the conditions you might enter into with the creditors. This same legal expert will protect your financial interest from the beginning of the filing of the petition until the resolution of the case. The culmination of this case ends with the final discharge of your debt. The process may seem simple. You might not even considering referring it to a bankruptcy lawyer. But the whole duration of the process may take approximately four months. There may arise complexities along the line so it really is imperative to have an attorney who has all the knowledge pertinent to bankruptcy law.
Many kinds of debts can be discharged through this process, wherein you will no longer be required of payment. Some of these are in your debts with credit cards, medical bills, personal loans, leases and other unsecured loans. But primarily, this will stop foreclosure of your residential property.
by: alona Rudnitsky
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