Chapter 7 Bankruptcy Ct
You can file chapter 7 bankruptcy CT following the steps that I will tell you but before that, let us talk about chapter 7. There are about 4 types of bankruptcy and the two most common types of bankruptcy that are applicable to the average citizen are chapter 7 and chapter 13. Between the two types of bankruptcies, many people would like to file a chapter 7 than chapter 13.
This is because in chapter 13, although it is a form of bankruptcy, you are still obliged to pay your debts in the time period agreed upon by you and your creditors. The difference in paying your debts the normal way and in chapter 13 is that you are protected by the court. Chapter 7, on the other hand, does not require you to pay your debts for a period of time. This type of bankruptcy is also known as straight or liquidation of property. The basic process on how this type of bankruptcy works is simple. You hand over your properties to the bankruptcy trustee, properties that are nonexempt properties. Nonexempt properties are subjected to liquidation which is a process of selling your properties to generate money to be paid to your creditors. A chapter 7 bankruptcy CT also works this way.
There are times, however, where those properties that are liquidated do not generate enough proceeds to cover the full amount of debts. Any amounts of debts that are not covered are considered to be forgiven or simply, you do not have to worry about it anymore. This is why many people want to file a chapter 7 because of how convenient it is even if you need to sacrifice some of your properties.
Of all the types of bankruptcy, filing for a chapter 7 is the least expensive and the fastest way in eliminating debts. Added to that, in just 6 months from the time you file your petition, your debts can be discharged. One disadvantage to filing chapter 7, it has the longest period of time that a bankruptcy status will be with you. It takes about 8 years before you are discharged from bankruptcy status, while in a chapter 13, it only takes 4 years. This can be a great deal of negative effect in your financial life after filing bankruptcy. Bankruptcy status is a huge red mark on your credit report. It will be hard for you to obtain new credit, get a promotion or even apply for a new job. To avoid this, always check your credit report and look for errors; there might be. Try to correct them as soon as possible. Another important thing is that, always try to file your bankruptcy in the best light possible.
Before you can file a bankruptcy petition, you have to prepare your bankruptcy papers. Doing it on your own can be a hassle and you also can make errors on it. I suggest hiring a petition preparer or a bankruptcy lawyer to prepare your papers. They do not cost much and they do it fast. For more information on how to file bankruptcy, visit the link below.
This is because in chapter 13, although it is a form of bankruptcy, you are still obliged to pay your debts in the time period agreed upon by you and your creditors. The difference in paying your debts the normal way and in chapter 13 is that you are protected by the court. Chapter 7, on the other hand, does not require you to pay your debts for a period of time. This type of bankruptcy is also known as straight or liquidation of property. The basic process on how this type of bankruptcy works is simple. You hand over your properties to the bankruptcy trustee, properties that are nonexempt properties. Nonexempt properties are subjected to liquidation which is a process of selling your properties to generate money to be paid to your creditors. A chapter 7 bankruptcy CT also works this way.
There are times, however, where those properties that are liquidated do not generate enough proceeds to cover the full amount of debts. Any amounts of debts that are not covered are considered to be forgiven or simply, you do not have to worry about it anymore. This is why many people want to file a chapter 7 because of how convenient it is even if you need to sacrifice some of your properties.
Of all the types of bankruptcy, filing for a chapter 7 is the least expensive and the fastest way in eliminating debts. Added to that, in just 6 months from the time you file your petition, your debts can be discharged. One disadvantage to filing chapter 7, it has the longest period of time that a bankruptcy status will be with you. It takes about 8 years before you are discharged from bankruptcy status, while in a chapter 13, it only takes 4 years. This can be a great deal of negative effect in your financial life after filing bankruptcy. Bankruptcy status is a huge red mark on your credit report. It will be hard for you to obtain new credit, get a promotion or even apply for a new job. To avoid this, always check your credit report and look for errors; there might be. Try to correct them as soon as possible. Another important thing is that, always try to file your bankruptcy in the best light possible.
Before you can file a bankruptcy petition, you have to prepare your bankruptcy papers. Doing it on your own can be a hassle and you also can make errors on it. I suggest hiring a petition preparer or a bankruptcy lawyer to prepare your papers. They do not cost much and they do it fast. For more information on how to file bankruptcy, visit the link below.
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