When one takes credit, they hope that they will be able to refund. Things may not turn out as planned and you may later find yourself in deep debts. Once you sense that your debts are overwhelming you, and you are unable to pay, you should file for bankruptcy. For this purpose, it would be best if you hire a chapter 7 attorney Prince William County professional. This attorney will assist you in knowing all about section 7 bankruptcy. Below are some basics that you need to know about this section.
Filing a chapter 7 bankruptcy is involved when a debtor wants to find a way out of his debts. Having property may be an advantage to the debtor as it can be used to pay the debt. The debtor offers the property to a trustee who in turn pays the creditor the money the debtor owes him. Assets of the debtor are though rarely involved in the section 7 cases.
On clearing his charges using his assets, the debtor is offered a discharge by the court to certify that he has completely paid the debt. The discharge is also a way to ensure that the debtor is protected from the creditor ever wanting to obtain more funds from him. It should also be understood that not all section 7 cases allow the option to receive a discharge. Tax, child support and alimony are cases that the provision of discharge is prohibited.
A debtor may intentionally use section 7 bankruptcy case to clear his debts easily. This idea is dealt with by ensuring that the debtors applying for the chapter meet certain conditions. Firstly they should owe either an establishment or incurred debts due to property. Secondly, the debtor should be one without any bankruptcy case and was discharged within the last six months. Lastly, a means test is done to investigate if the debtor should be allowed to get the case so as to be discharged. A means test involves carrying out research on the debtors main income and comparing it to his expenses to ascertain if he can pay a certain amount of money to the creditor over some months. An example is in the US where the debtor is expected to pay 110$ over 60 months. If the results show that the debtor is unable to do so, he is allowed to file for a section 7 bankruptcy case.
Once you pass the means test, you qualify for a section 7 bankruptcy filing. However, a person who had the same discharge in the previous eight years cannot qualify for a section 7 case. A person who in the last six years was given a section 13 discharge cannot get a section 7 unless he already paid at least 70% of his unsecured debts.
One also has to note that a debtor who cannot explain how he lost his assets is forbidden from receiving a section 7. This is especially applied so as to ensure that debtors are aiming to swindle their creditors do not succeed. A debtor who disobeys any of the court orders by the bankruptcy court is also denied a section 7 discharge.
A certificate of credit council needs to be filled in the court. The debtor is thus supposed to take the credit council lessons within 180 days. For those unable to take the lessons in class, online classes are also offered.
The smooth progress of the case is certain if the debtor hires a good bankruptcy lawyer in Prince William County, VA to guide him through the case. The lawyer will also inform you on ways to manage your finances in future to avoid any more debts.
Filing a chapter 7 bankruptcy is involved when a debtor wants to find a way out of his debts. Having property may be an advantage to the debtor as it can be used to pay the debt. The debtor offers the property to a trustee who in turn pays the creditor the money the debtor owes him. Assets of the debtor are though rarely involved in the section 7 cases.
On clearing his charges using his assets, the debtor is offered a discharge by the court to certify that he has completely paid the debt. The discharge is also a way to ensure that the debtor is protected from the creditor ever wanting to obtain more funds from him. It should also be understood that not all section 7 cases allow the option to receive a discharge. Tax, child support and alimony are cases that the provision of discharge is prohibited.
A debtor may intentionally use section 7 bankruptcy case to clear his debts easily. This idea is dealt with by ensuring that the debtors applying for the chapter meet certain conditions. Firstly they should owe either an establishment or incurred debts due to property. Secondly, the debtor should be one without any bankruptcy case and was discharged within the last six months. Lastly, a means test is done to investigate if the debtor should be allowed to get the case so as to be discharged. A means test involves carrying out research on the debtors main income and comparing it to his expenses to ascertain if he can pay a certain amount of money to the creditor over some months. An example is in the US where the debtor is expected to pay 110$ over 60 months. If the results show that the debtor is unable to do so, he is allowed to file for a section 7 bankruptcy case.
Once you pass the means test, you qualify for a section 7 bankruptcy filing. However, a person who had the same discharge in the previous eight years cannot qualify for a section 7 case. A person who in the last six years was given a section 13 discharge cannot get a section 7 unless he already paid at least 70% of his unsecured debts.
One also has to note that a debtor who cannot explain how he lost his assets is forbidden from receiving a section 7. This is especially applied so as to ensure that debtors are aiming to swindle their creditors do not succeed. A debtor who disobeys any of the court orders by the bankruptcy court is also denied a section 7 discharge.
A certificate of credit council needs to be filled in the court. The debtor is thus supposed to take the credit council lessons within 180 days. For those unable to take the lessons in class, online classes are also offered.
The smooth progress of the case is certain if the debtor hires a good bankruptcy lawyer in Prince William County, VA to guide him through the case. The lawyer will also inform you on ways to manage your finances in future to avoid any more debts.
About the Author:
If you are looking for the facts about a Chapter 7 attorney Prince William County locals can pay a visit to our web pages online here today. Additional details are available at http://jpg3law.com now.
No comments:
Post a Comment