What Chapter 7 Bankruptcy Involves

Applying for bankruptcy is a process that most people want to avoid. The past few years this has been difficult to avoid because of the harsh economic conditions experienced all over the world. Consequently, more people have applied for bankruptcy during this period. There are two types of bankruptcies that you can file for under the law: Chapter 13 and Chapter7. Each of them is different, therefore before applying for any of them it is crucial to understand what each involves. Chapter 7 Richmond bankruptcy is the one people apply for when they are in extreme financial situations. This type of bankruptcy is not popular because of what the process involves. It is known as the ultimate consumer bankruptcy. People apply for this bankruptcy as a final resort. Some of the things that you need to understand about this bankruptcy include:

     *     Qualifications- it is important to consult a lawyer when applying for this process. They are able to explain what the process involves and take you through it without any challenges. Most lawyers will advise you to apply for Chapter 7 bankruptcy when you get several unsecured loans and do not have an income that can be able to pay off these debts. You need to have all your financial records to be able to show that you cannot pay for these debts. These documents include bank statements, pay slips, and receipts that can be presented as evidence before a court.

     *     When you apply for Chapter 7 bankruptcy, the court will liquidate all the assets that you have in order to pay off your creditors. The money obtained from liquidation will be distributed evenly among your creditors allowing you to get some reprieve. Once paid the creditors are not allowed to bother you again. You need to know which debts you still have to pay despite the declaration of bankruptcy. The debts vary in each state and you need to talk to your lawyer to learn which debts are in your case. It is important to note that when liquidating assets, the state will exempt some assets. It is crucial to learn which assets will be exempt when you apply.

     *     The earlier you seek help the better it will when you apply for Chapter 7 Richmond bankruptcy. It is also important to hire a competent lawyer. When you seek help early, you can be objective while choosing your lawyer. When you wait for too long the situation can get desperate and you are prone to make more mistakes. A competent lawyer will ensure that the process is simple and fast. Some states require that one attend financial counseling from a professional hired by the state after going through this process.



It is not easy to file for a Chapter 7 bankruptcy. The process can be exhausting. Find all the information and assistance you need from aubreyhammond.com.

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