How Do I File Bankruptcy Chapter 7

By: stevefpa Click author's name for more of his/her articles

There are many types of bankruptcy that you can choose from but it can only be one type of bankruptcy that fit your needs. It is important to consider other options before deciding to go through bankruptcy. It is crucial to understand the disadvantages of bankruptcy, it can have a negative effect on your future employment and it will be hard for you to obtain future credit because of the huge red flag you have on your report card.

How do I file bankruptcy chapter 7? In order to file for a chapter 7 you must be eligible, that is passing the means test. This test determines whether you can pay your debts or not. Having the ability to pay your debts will make you ineligible to file for a chapter 7 type of bankruptcy. When you decide to go through bankruptcy with a chapter 7 keep in mind that it would take you once in every eight years to receive a discharged of your debts using this type of bankruptcy. The benefit with chapter 7 is that your creditors are prohibited from collecting their claims against you once you have filed the case. The difference between a chapter 7 and chapter 13 is that chapter 7 eliminates debts in exchange for the liquidation of your property while in chapter 13 debtor need to pay the debts according to the repayment plan.

In chapter 7 a debtor can keep a few of his or her properties which are called exempt properties. These properties are not liquidated. What is appealing in a chapter 7 type of bankruptcy is the quick fresh start it can provide for people. Because of this many people aim to file a chapter 7. Prior to the October 2005 BAPCPA new changes in the bankruptcy law, people were allowed to choose what type of bankruptcy they prefer and most people file chapter 7. Because of this new laws were made that made it difficult to file for a chapter 7 type of bankruptcy.

How do I file bankruptcy chapter 7 with less money? Although chapter 7 is much cheaper to file than chapter 13, there are still ways that you can cut the cost of filing. The first way is to file bankruptcy chapter 7 yourself. This is a lot of work, you need to study all the things needed to learn to file bankruptcy but if your determined to know all of that information for a short time then you could probably do this. The only risk is that making mistakes in preparing your papers can make you loss more assets than you need to.

The other way which I suggest is hiring a petition preparer or a bankruptcy lawyer to prepare your papers. You can pay them their flat fee and do the rest yourself. This will avoid mistakes because your papers are prepared by people who are authorized doing this legal stuff. If you decide to go through hiring a petition preparer instead of a bankruptcy lawyer, make sure the petition preparer abides with the legal rules. For more support on how to file bankruptcy, visit the link below..

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About The Author: Steve Young is the author of The #1 Secret On How To File Bankruptcy. To get your free CD on How to File Bankruptcy Without an Attoney, go to www.onlinebkassist.com