Chapter 7 Bankruptcy
If you are currently experiencing financial difficulties, then you may be wondering how to best handle your situation. Before you exhaust all of your resources in trying to find a solution, you may want to consider filing for bankruptcy. Though bankruptcy may seem frightening at first, successfully completing the process can bring a great deal of relief.
One of the most common forms of bankruptcy that one can file is known as Chapter 7 bankruptcy. This method of debt resolution is available to consumers, partnerships, and corporations. Debtors can only file Chapter 7 bankruptcy if they pass the means test, which determines whether or not they have the means to file for Chapter 13 bankruptcy instead. However, Chapter 13 does not fully eliminate debts in the same way that Chapter 7 does.
Chapter 7 bankruptcy is also known as liquidation bankruptcy because of the manner in which it resolves your debts. Once you successfully file, a trustee is appointed to you. This person assesses all of your property and determines which assets are exempt and which are non-exempt. All non-exempt items are considered unnecessary living items, and they are sold off. The money made from these sales is paid to creditors in order to reduce or eliminate your debts. However, important assets such as your primary home and automobile are generally considered to be exempt.
If you would like to learn more about Chapter 7 bankruptcy, or if you are considering filing for Chapter 7, contact experienced Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC today by calling (205) 324-4000.