What You Should Know About Chapter 7 Bankruptcy

The bankruptcy process can be difficult to understand, especially if you are new to a financially distressing situation. Choosing which form of bankruptcy is right for you and your loved ones can seem like an impossible choice if you dont have enough information. Despite past negative connotations for bankruptcy, this process is much more widely accepted because so many individuals and businesses are struggling in todays economy. Chapter 7 bankruptcy is one of the most common forms of bankruptcy, and it has saved many people from financial ruin. This form of bankruptcy might be right for your situation, but its best to educate yourself about it before you finally decide.

What You Should Know

When youre thinking about filing for bankruptcy, knowing as much about the process as you can will make the decision to file easier, because you will be able to confidently assert which form is right for you. Some important aspects of Chapter 7 bankruptcy that you can keep in mind include:

  • Its available for both businesses and individuals
  • It involves a means test, which tests an applicants need
  • It involves asset liquidation, where you sell your assets to creditors to pay back debts immediately
  • It is one of the most common forms of bankruptcy

This information about Chapter 7 gives people a basic understanding of the overall concept, but the best way to know as much as you can about any form of bankruptcy (especially the distinctions between different forms) is through a consultation with an experienced legal representative.

If you or a loved one is going through a very difficult financial situation and is thinking about filing for bankruptcy, discuss your situation with a compassionate and experienced bankruptcy attorney today, who can help you decide what your next steps should be.

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