The great thing about America is that every citizen is protected by its laws. Let me make this scenario as an example: A single parent was given the chance by various institutions to borrow money from them - loans, credit card companies and other in-house establishments. At first, payments were made on time until this citizen loses his job and bills piled up. Seeing that he has no choice in the matter, he resorted into filing Chapter 7 Bankruptcy - his last hope.
What is Bankruptcy?
It is when your liabilities is way more than what you own and every creditor is looking for you to pay your debts to them. You will be experiencing harassment from others and leniency on some. Either way, it is a very terrible situation to be in.
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What is filing Chapter 7 Bankruptcy for?
This is the protection I am talking about. Even if the single parent is in default, with his rights as a person, he is protected by law. No one is allowed to make him feel inferior because he owes them money. Resorting to Chapter 7 eliminates those downgrading phone calls and collectors. This is a process of liquidating what you have so that your debts will be paid accordingly and for the time being you will be at peace, considering your problematic situation. On the side of the creditor, they are also protected in a way that they will be paid of the debt in part or full depending upon the payment schedule after the liquidation.
Initial Details in filing Chapter 7 Bankruptcy
1. An official petition is needed to declare the bankruptcy. Also, you will need to fill up a Statement of Financial Affairs and schedules on your debts and assets - including your most recent financial records.
2. Include all your debts in the schedules, however small. All creditors must be made known with complete details of their nature: debt amount, type of debt, address of creditor, contact information and such. Remember: Do not leave anything out. This is time consuming but it must be done when filing Chapter 7 Bankruptcy.
3. List every property you own - and the debt associated with it if any. The value of the property must also be declared. Property is not limited to real estate but also includes anything of value like assets and possessions.
4. After filling out the needed forms, as debtor, you must sign the documents or the schedules and will be filed with the bankruptcy clerk of your area. On the day of filing, an automatic stay arises posing a legal barrier between you and the creditors. They cannot harass you any longer. A trustee is appointed to facilitate and all creditors will be informed of your filing Chapter 7 Bankruptcy.
After this, a meeting of creditors will take place. You will reaffirm your properties and try to get some of the debts discharged. After everything happens in about 4 to 6 months, the case comes to an end with you being able to pay what you can afford to pay. Life continues for you and your creditors. Remember that you are not alone and the law will be by your side when you need it. Be informed about your rights.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
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