How Do You File Chapter 7 Bankruptcy?
Economically challenging times can result in more people so overwhelmed by debt that bankruptcy may appear to be the only option. Before you file for Chapter 7, a liquidation procedure whereby the debtor turns over all non-exempt property to a trustee who converts it to cash to pay creditors, know what you are signing. Make sure you know the consequences and explore possible alternatives. Also get up to speed on new laws, which may keep you from filing in the first place. Familiarize yourself with bankruptcy. You will be scarred by the scarlet letter “B” on your credit report for a decade. Moreover, new laws require one take a credit counseling course six months before one files, and take a financial management course before the debt is discharged. See if you are eligible. To qualify, one has to see if his or her monthly average of the last six months of gross income falls below the median income for the state. If it does, you can file right away. If it doesn’t, don’t fear. Your legal
