Are you curious about whether or not Chapter 7 bankruptcy eligibility requirements are something you could meet? Do you want more information about how to get help when it’s time to consider bankruptcy as a serious option? Most people want to try to get a dismissal through Chapter 7 first as it’s considered a total liquidation, but not everyone will be able to get the support provided by that. Bankruptcy filers may need to consider Chapter 13 as their alternative option, and in this case, talking to the right lawyer is crucial for your case.
Filing for bankruptcy is a difficult position, but one that has become easier for affected individuals in recent years because of the reduced stigma surrounding bankruptcy and more lenient laws that allow you to keep more of your property. A recent study completed by the American Bankruptcy Institute found that those people who filed Chapter 7 bankruptcy were much more likely to receive a dismissal than their Chapter 13 counterparts. More than 95% of the 499,000 plus Chapter 7 bankruptcy cases that were filed in 2016 were discharged, meaning that the individual no longer had a legal responsibility to pay that debt. In comparison to Chapter 13 bankruptcy, however, approximately half of people who filed these petitions had their cases dismissed and the other half were discharged. People often try to pursue Chapter 7 bankruptcy before turning to Chapter 13. There are various factors, however, that could exclude you from getting Chapter 7 bankruptcy protection. Chapter 7 bankruptcy gives you the opportunity to get a court judgment that releases you from the responsibility for paying your debts.
You are allowed to keep particular assets, including exempt property but the nonexempt property is ultimately sold to pay a portion of your debt. Nonexempt property includes stock investments, cash, stamp or coin collections, bank accounts, a second home, and more. These nonexempt items will be liquidated and the proceeds from the sale will be used to pay lenders. More than 63% of individual bankruptcy cases filed in 2015 were done under Chapter 7. Consulting with an experienced bankruptcy attorney is often the first thing you should do if you are curious about your bankruptcy rights.