What You Need to Know about Chapter 7 Bankruptcy

Chapter 7 bankruptcies are the most frequently filed by individuals or businesses. Declaration is serious business and a person or business seeking bankruptcy relief should seek the assistance of an attorney.

Chapter 7, Title 11, United States Code, specifically deals with the process of liquidation. Chapter 7 Bankruptcies are the most common form of bankruptcy an individual or company declares. For a business, liquidation means that the company is ended and its valuable assets are sold with the proceeds going to the creditors. Some protections exist to prevent seizure of certain properties, but these usually specifically apply to individuals declaring a Chapter 7 Bankruptcy. A bankruptcy attorney, or several, are a requirement for corporate declarations. An individual can usually get by with a legal financial counselor or a bankruptcy attorney.

Chapter 7 Bankruptcy Declarations Leave a Legacy

If an individual declares a Chapter 7 Bankruptcy, most any assets, including any businesses owned, may be seized to repay creditors. In many instances, some of that property may have been bought on credit and not completely paid for. A Chapter 7 Bankruptcy usually stays on an individuals credit history for up to ten years. However, that duration can be devoted to rebuilding credit scores.

Chapter 7 Bankruptcy Attorneys Can Ease the Way

Any individual who is considering a declaration of bankruptcy would be wise to approach an attorney for assistance. They can facilitate the process, making it as painless as possible, and ensure the affair plays out as planned. An individual petition preparer can help with the legal paperwork of the declaration as a lower cost than an attorney, but since they are not legally trained to the same degree as an attorney, the outcome may not occur as planned.

Do It Yourself Chapter 7 Bankruptcy Declarations

Much like tax software that has become ubiquitous over the last decade, these recessionary times have spawned bankruptcy declaration software. One can now declare bankruptcy online. This can save time and money, but the software does not have the cognitive and sympathetic powers of a human counselor. When it comes to accuracy, it does not do much better than spell-check does for a second-language user. Of course, an individual could just fill out and file the bankruptcy forms. But, the forms are very complex, and this approach could lead to more problems rather than create a solution.

Chapter 7 Bankruptcies Can Be Complex

Of all the options, finding an experienced bankruptcy attorney will probably provide the most benefit to individuals or businesses overwhelmed by debt. Terms, conditions, ramifications of any legal and financial circumstances are bound to be rather complicated. An attorney will help an individual see his or her predicament in an enlightened and experienced way, and play call the best cards for that individual.

Chapter 7 Bankruptcy Not the End of the World

A bankruptcy declaration is not the end of the world or the end of life. Bankruptcies are a part of the legal system because human beings are not infallible. And sometimes, human beings are just the victims of a cruel fate. Bankruptcy certainly foments some huge changes in an individual’s life, but it also provides relief, a chance to begin again. However, in all fairness, creditors should not pay for the poor judgment or bad luck of any individual. And though the stigma of bankruptcy may last a long time, that time can be spent to rebuild the credibility of the individual or business.

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