It is a common misconception to assume that when individuals talk about bankruptcy, they all suggest the same thing. The truth is that there are different types and procedures of bankruptcy.
You could consult an Eastern Shore bankruptcy attorney to get advice on which method would suit your particular situation. However, among the forms of bankruptcy typically overlooked is Chapter 7 Bankruptcy, frequently referred to as liquidation bankruptcy. Although not the fastest type of bankruptcy to process, using up to six months to process fully, due to its complexity it is definitely not the most intricate nor the most long-winded of all the bankruptcy procedures.
As mentioned, Chapter 7 bankruptcy is commonly referred to as liquidation bankruptcy. This is because part of the procedure of declaring yourself bankrupt under the terms of Chapter 7 bankruptcy involves the liquidation of many, or all, of your possessions. This is done in order to clear your financial obligation. Some possessions could be maintained by an individual; the value of this would vary from one state to another and depends on what the value of the assets are and the general financial obligation level. It would be highly uncommon for an individual asserting Chapter 7 bankruptcy to keep their real estate as houses are often liquidated.
Various forms of bankruptcy match different individual circumstances, Chapter 7 bankruptcy particularly suits people who have accumulated substantial assets however who also have very high debt levels. Those with little assets would not benefit finest from Chapter 7 bankruptcy; it fits those with huge value possessions, such as homes, vehicles, artwork and so on.
Prior to starting the bankruptcy process, it would be advisable to talk through your choices with someone acquainted with the different forms of bankruptcy. An attorney or financial advisor would be good as there are many options available to you, even when you have selected bankruptcy.
Filing Chapter 7 bankruptcy involves selecting either an individual or a company to act as a trustee for the bankruptcy procedure. The trustee would be responsible for the selling of the assets of the individual claiming the bankruptcy. This is a position of some responsibility.
Given that the procedure of Chapter 7 bankruptcy is intricate in its validities, it would be required that anyone declaring this kind of bankruptcy contact a qualified legal representative. Laws on bankruptcy differ from one state to another, so it would be important that any individual claiming for Chapter 7 bankruptcy find a legal representative with experience in their state.
There are numerous requirements that should be fulfilled before you can start the bankruptcy process. A Qualified lawyer will understand the requirements for your state and advise you on whether or not you will get approved for Chapter 7, or for any other type of bankruptcy.
Chapter 7 bankruptcies can take a long time to process, mostly because the trustee has to sell off the possessions of an individual asserting bankruptcy in order to settle the lenders. This procedure can take some time to guarantee the best rate is received for each asset.