How will a Chapter 7 bankruptcy help eliminate credit card debt and stop a pending foreclosure?
Chapter 7 bankruptcy is the bankruptcy chapter commonly referred to as liquidation bankruptcy. In Chapter 7 bankruptcy, your personal liability to any unsecured debts will be dismissed. Bills such as credit card bills, medical bills, and personal loans (aside from student loans) will be discharged as long as you qualify. A meeting of creditors takes place and a court appointed trustee is assigned to your case and will liquidate all nonexempt assets in an effort to maximize the money which is owed to your creditors. However, almost all personal assets are deemed as nonexempt and it is rare that the trustee will liquidate your belongings.
Do I qualify for Chapter 7?
If you are looking to claim Chapter 7 bankruptcy, you must make sure that you qualify. In order to meets the requirements for Chapter 7 bankruptcy, you must first pass the means test and go through credit counseling. Unless you pass the means test, you will not be able to declare Chapter 7 bankruptcy. As long as you pass the means test and obtain a certificate from credit counseling, you are on the road to a debt free life. By calling one of our Sacramento bankruptcy lawyers you can find out whether or not you pass the means test. We do this free of charge for you during a free consultation.
After Chapter 7 bankruptcy, you will gain a fresh financial start. Although your credit will be adversely affected, you will be able to rebuild your credit quickly. Within a few months you will be able to get a new credit card or car loan. Bankruptcy stays on your credit rating for at least 10 years, so if you have any questions call us today.
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