How Does Chapter 7 Bankruptcy Work? – Economic Development Jobs
lawyer to clear off a variety of unsecured debts which they could have defaulted on but are now unable to pay for. Chapter 7 bankruptcy is distinct from chapter 13 bankruptcy, which is where the repayment plan to pay creditors is normally set up. Instead of chapter 13 it allows individuals to dispose of their non-exempt properties to pay their creditors, chapter 7 bankruptcy requires an asset be sold in exchange for any proceeds used for the payment of debtors.
In order to be eligible for a chapter 7 bankruptcy, you’ll need to provide proof that you are earning a lower income. If you earn an excessive income, courts will look at the amount subtracted to cater to the expenses. Chapter 7 bankruptcy may be available in the event that the balance of your income exceeds your ability to pay creditors. Even though you have the option of amending chapter 7 after discharge the bankruptcy, it’s more challenging than when you were first filing.
It is important to determine which sort of bankruptcy will work best for you , and also what will happen after bankruptcy chapter 7. It is a long and complicated process. as such, you should make an appointment with an attorney who is specialized on bankruptcy law.