What Assets Can You Keep in a Chapter 7 Bankruptcy?

What Assets Can You Keep in a Chapter 7 Bankruptcy?

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What Assets Can You Keep in a Chapter 7 Bankruptcy?

To assure you receive an ‘automatic stay’, which is granted to you by operation of law, you must file for your bankruptcy under Chapter 7, and meet with everyone legal requirements and fees. Only then, will you be able to stop overall collection actions on your properties. No creditors can initiate or continue lawsuits, wage garnishments or request payments by phone, providing the stay is valid.

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Although you may file yourself, hiring a bankruptcy attorney ‘s a better choice. Filing for bankruptcy is complicated and often confusing. By hiring a professional, you ensure that the correct paperwork is filed and that the process will go smoothly.

Filing bankruptcy under chapter 7 of the bankruptcy code, costs almost 250 to 350 dollars depending upon the specific case. However, you should not forget about the long-term bankruptcy expense that chapter 7 bankruptcy brings with it. Once you are declared bankrupt under this chapter, the bankruptcy will keep affecting your financial life negatively, for the subsequent 10 years at least.

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To file for chapter 7 bankruptcies, you are looking at paying $299, and to file for chapter 13, it will expense $274. If you cannot pay it all in one time, there are ways around this, and you will be allowed to pay it off in installments.

Are there any exceptions/loop holes? Some properties (equity in a home, equity in a car, tools of the trade, and couple amount of private effects) are exempt from being sold to pay bankruptcy debt. Private effects with little value are exempt, because they do not promote any desirable economic result. Not all debts may be discharged under every chapter of bankruptcy. (Taxes owed to federal, state or local government, support obligations, and government guaranteed student loans. The main purpose of bankruptcy is to guarantee orderly and reasonable management of debt.

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If you have over $$$ in unsecured credit debt there is legit assist out there. Instead of going straight to a debt settlement company you might have heard on the radio or television, it might be wise to use a debt relief network. This way you can be assured that you find a legitimize company in your state. Test out the following link for a list of legitimate debt settlement services in your state

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