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BANKRUPTCY
• Alternatives to Filing Bankruptcy
• How to Avoid Foreclosure
• Chapter 7 Bankruptcy
• Bankruptcy And My Bills
• Bankruptcy and Bill Collectors
• Your Property and Assets
• Your House and Car
• About the Process
• Bankruptcy Questions & Answers
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Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a liquidation proceeding. The debtor turns over all non exempt property to the bankruptcy trustee, who then converts it to cash for distribution to the creditors.
The debtor receives a discharge of all dischargeable debts.
To file a Chapter 7 bankruptcy:
* You must reside or have a domicile, a place of business, or property in the United States or a municipality.
* You must not have been granted a Chapter 7 discharge within the last 6 years or completed a Chapter 13 plan.
* You must not have had a bankruptcy filing dismissed for cause within the last 180 days.
* It must not be a "substantial abuse" of Chapter 7 to grant the debtor relief. Generally speaking, if after you pay the monthly expenses for necessities there is not enough money to pay the remaining monthly debts, then granting a discharge would not be an abuse of Chapter 7.
* It would not be fundamentally unfair to grant the debtor relief under Chapter 7.
The most common reasons for consumer bankruptcy are:
* Unemployment
* Large medical expenses
* Seriously over extended credit
* Marital problems
* Large unexpected expenses
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