Overview Of Chapter 7 Bankruptcy

Chapter 7 bankruptcy is also morbidly known as "liquidation" or "absolute" bankruptcy. In this plan, that a
Once a debtor is approved to file Chapter 7, they must successfully complete credit counseling with a government approved agency. A list of these agencies is available at a Detroit bankruptcy lawyer's office. The certificate you receive from this counseling must be presented to the court along with your filing documents.

Presently, the court cost of filing a Chapter 7 action is $274 and the process takes between four and six months to complete, involving one court appearance. A Detroit bankruptcy lawyer's office will charge additional administrative fees.

Once your petition is filed with the court, a trustee will be appointed to your case. He or she is now in control of all assets and debts. He and his staff will review the court documents and determine which, if any, nonexempt assets can be sold off. Any monies collected will be disbursed to creditors at the trustee's discretion. Once the case is in the trustee's hands, no property may be sold nor acquired and no debts can be paid off by you.

The court will schedule a creditor's meeting at which your creditors have the option of appearing and questioning you under oath about your indebtedness. This is usually the only court appearance you are required to make.

After all of the requirements have been met and all possible debt paid off, the trustee will discharge all remaining debt that is eligible. Some debts are exempt from the bankruptcy process, however. These may include student loans, alimony, child support, some taxes and any other debts to which creditors have raised objections.

From this point, the debtor cannot be held responsible for any debt discharged under the Chapter 7 plan. However, if there is any inheritance, insurance payoff or proceeds from a divorce settlement pending, you must notify the court if they occur within 180 days after the date of your filing.

A Chapter 7 bankruptcy will remain on your credit record for 7 to 10 years and may affect your future ability to obtain credit, insurance and sometimes employment. Another Chapter 7 cannot be filed for 8 years.





For experienced, knowledgeable and trustworthy bankruptcy assistance, contact the attorneys from www.legalhelpers.com. Call toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 offices across the country.