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If filing for bankruptcy is an opportunity for a debtor to emerge out of a financial crisis and get a fresh start, then Chapter 7 of the Bankruptcy Code is the way to achieve this end relatively quickly. Under Chapter 7 of the Bankruptcy Code, all non-exempt property of the debtor is sold and the proceeds are distributed to the creditors. In most cases where Chapter 7 is brought into force the debtor has no assets to lose, therefore the fresh start takes place relatively faster. How can you determine if Chapter 7 Bankruptcy Is The Best Solution? Also known as liquidation (converting assets into money) or a straight bankruptcy, Chapter 7 Bankruptcy is the most common form of bankruptcy filing. This type of bankruptcy filing accounts for as much as 65% of all Consumer Banking filings. As mentioned before, this is one of the faster ways of starting fresh and more so if there are no objections from any of the parties involved. Ordinarily, most (if not all) debts would be discharged within months of the attorney filing a bankruptcy petition. If you're wondering how a Chapter 7 Bankruptcy works, it is relatively simple. A trustee is appointed who collects all non-exempt property, sells the assets and distributes proceeds from this sale to appropriate creditors. Chapter 7 is different from other bankruptcy filings because the debtor needs not make a payment to the trustee. Even though in some cases this would mean that you will lose all your assets, this is not always the case. It is strongly recommended that if you are apprehensive and feel you will lose your assets, discuss the matter with your Bankruptcy Attorney. Under Chapter 7 Bankruptcy, the debtor receives a discharge on all dischargeable debts. There are 19 general classes of debt that are discharged under Chapter 7 Bankruptcy. An added advantage with Chapter 7 bankruptcy is that by signing a reaffirmation agreement a debtor can continue to pay for a car loan or a mortgage on their home. This agreement is in place per the U.S. Government Bankruptcy Code in that a debtor could be allowed to retain some or all of his property. Who Can File For A Chapter 7 Bankruptcy? The reverse of this question would be more appropriate to answer. Debtors engaged in business would usually not like the prospects of liquidation and Chapter 11 might be a better option for individuals associated with corporations and partnerships. Also, individuals with regular income in a debt situation would be better suited to file a Chapter 13 bankruptcy. Additionally, any person who has been granted a Chapter 7 discharge (or completed a Chapter 13 plan) within the last 8 years, cannot file for a Chapter 7 bankruptcy plan. How can you File For A Chapter 7 Bankruptcy? Once you get down to filing for Bankruptcy you'll understand that our attorneys know best! Filing for bankruptcy is the fulfillment of a clearly laid of set of rules and procedures, but it can be as complex as it is simple. You need to be sure about the answer to the question: "Do you need to file for bankruptcy?" Once you've filled out our evaluation form and determined the answer to that basic question through discussion with our attorneys you will be given the details of your case. Be sure that the information you provide is complete and correct. Once these preliminary pieces are taken care of, leave it to the attorneys to take your case to its logical conclusion. How to Start the Chapter 7 Process If you are ready to find out if Chapter 7 Bankruptcy can help improve your financial situation, the best place to start is with our Free Case Evaluation form. Complete our intake form and a bankruptcy attorney in our firm will call you to discuss your options. Bankruptcy law differs from state-to-state so it's important that you discuss your case with an experienced Las Vegas bankruptcy attorney that understands bankruptcy laws in Nevada. Call the bankruptcy attorneys at Glen J. Lerner & Associates at (702) 877-1500 for a FREE bankruptcy evaluation!
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