What is the bankruptcy for businessman?
If the businessman cannot afford to pay the debts, he may opt for the bankruptcy under Chapter 7. He may also be forced by creditors to file for bankruptcy under this Chapter since in this case his property will be passed to the court and sold out in order to pay off the part of the debt. It will take not more than 6 weeks in order to run the procedure.
In some cases the creditor might appear to be fully secured. This happens when the collateral securing the loan is higher or the same amount as the debt is. For this reason the secured creditors are not allowed to take part in the bankruptcy procedure.
What is the bankruptcy for individuals?
The people who have business or property in USA are able to opt for bankruptcy. The Chapter 7 enables them to use the chance of the straight bankruptcyin case their debts are really too high.Still if the case of bankruptcy was dismissed within 180 days, this option is not available.
Most of the valuable property is taken away while the bankruptcy procedure, however some of the belongings remain; there are a lot of cases when debtors managed even to claim their house. Most of unsecured debts appear to be solved and close, still there are some debts which are not closed by bankruptcy and shall be paid anyway. Special cases are like child support, student loans, etc.
If you file up for bankruptcy according to the Chapter 7, this will remain in your credit report for the next 10 years. If you want to shorten the period, feel free to opt for the Chapter 13 and get the bankruptcy mark in your history for the next 7 years only. The important feature of the mark is that it actually doesn’t hold you off getting the credit. The only thing is that the rates may appear to be somewhat higher.
Much higher problems will occur in case you get accused in abuse of the Chapter 7 or Chapter 13. This means the debtor appeared to be able to pay off the debt within next 5 years; still he opted to hide this possibility in order to get rid of debts. There were so many cases of this kind of abuse, that in 2005 the changes were made in the law in order to make the bankruptcy procedure more complicated.
So keep in mind the future effect of bankruptcy and the complicated procedure of the task before opting for it as for the debt relief way.
What is the right way to file bankruptcy for Chapter 7?
Here we offer several federal bankruptcy forms you can choose from. The needed templates are mostly based on the computer work, thus you will not have to fill in a lot of data in the papers manually. Still you need to be accurate when dealing with electronic papers as well.
When dealing with the papers, the person usually doesn’t have to deal with the bankruptcy forms while being shielded by the web page. All you need to do is to respond to the given questions and let the webpage get slowly filled by your answers. The usual list of questions contains the name and surname, address and the list of creditors as well as the detailed financial information. The sure con of the form is the possible inaccuracy since the web page can never make sure the person understands each question correctly.
How to prepare the Chapter 7 bankruptcy petition without the attorney
If you do not want to make it all yourself, but you also want to avoid turning to the attorney, opt for the special Non-attorney bankruptcy petition preparer. This is the perfect way for those who cannot afford to pay for the real attorney, yet who still cannot deal with the things on his own. In this case the trained individual fills all the forms instead of the debtor, yet that it all his work is about. All he does is filling the forms without any more future help. You will never be sure the maximum advantage was taken in your situation.
The bankruptcy attorney
The bankruptcy attorney will successfully supervise you all through the bankruptcy case. He will assure your papers are filled in correctly as well as that you get all the benefits of Chapter 7. He takes care of the deal to be safe and successful for the side of the debtor.