Chapter 7 Bankruptcy For Individuals

Nowadays it is not unusual that some big company has bankruptcy experience. But, not only big companies can have bankruptcy experience, even small business companies with smaller investing are facing bankruptcy today. With last years economical crises all over the world, a lot of good companies are on the verge of collapsing. So, the only solution for that is taking good decisions and tactical moves with constant contact and consultation with lawyer and bankruptcy attorney and stay in touch with new financial scriptures. There is lot of information about bankruptcy, but before you start with financial scriptures it would be good for you to know some of the types of bankruptcy chapters.

One of the chapters that are useful is chapter 7 bankruptcy. It is a type, also known as “liquidation” or even “straight” bankruptcy. This kind of chapter is made for those debtors who have problems with finance and financial difficulties. Most problems that this kind of debtors has, is problem with repayment of their already taken debts. For Chapter 7 bankruptcy you will need to pass one test, known as Means Test, where you will be tested for eligibility for this type of the bankruptcy relief. So, the point is that if you don’t pass the test, you have opportunity to fill a Chapter 13 or converting Chapter bankruptcy into chapter 13.

It is also important to know that the goal of filing chapter seven is to get a discharge of the debts that you have from your creditors. But, if Court finds out that you had committed certain kind of fraud, you can be denied for discharging of the debt. But, no matter of discharging, what you need to know is that there are still debts existing which can be discharged. Debts such as taxes and loans for students, supported payments and alimony, criminal restitution, debts for death or personal injury caused by driving under influence of drugs or alcohol are debts for which you can be responsible.

With Chapter 7 bankruptcy you can be discharged of various debts, such as personal loans, credit cards, dentist bills and debts of similar nature. One thing that makes this discharge more painful is that you are usually required to surrender certain type of property. But, there are a lot of the people who would file for discharge under Chapter 7 bankruptcy and yet they have optional solution for some debts which are not wiped with this condition.

Another type of chapter bankruptcy is chapter 13 which is also known as “repayment bankruptcy. One is chapter 11, for big business interests. But, the most similar with chapter 13 is chapter 12 which is reserved and used for family farmers. Other type of the chapter bankruptcy is chapter 9 and chapter 15, the former being for municipalities and governmental entities and the latter for providing effective mechanisms and property in more countries. So, for individuals in business, out of these chapters most suitable chapters are chapter 7bankruptcy and chapter 13.

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