If people are not able to pay off their debt, the only way out is filing for bankruptcy. However, it is advisable to try other solutions before taking this step, as bankruptcy is the last resort that you may have.
There are several types of bankruptcy, and one of the most popular options is Chapter 7. If you think about taking this important step, it is necessary to find out more about the main ins and outs involved. This is what will help you determine whether this step is your feasible solution. It is advisable to consult with a good lawyer in order to get this kind of knowledge. For example, you may decide to use the services of ariano and reppucci bankruptcy law firms.
Filing for Chapter 7 bankruptcy works best for those borrowers who have only limited assets and a lot of financial issues. Basically, it is necessary to deal with two crucial provisions – your liquidation and means test.
I. The means test and everything it involves.
Courts decide to conduct this kind of test to ensure people that they do not have to file for Chapter 7 bankruptcy. This is when it is required to examine different papers to decide whether borrowers can’t pay off their debts. This is what helps to determine whether bankruptcy filing is the best solution for each person planning to take this step.
II. The process of liquidation and its main basics.
It is not a secret that one of the most fearful aspects involved in bankruptcy filing is liquidating valuable assets. This feature makes Chapter 7 bankruptcy the best option for those borrowers who have no assets at all. They are required to liquidate all of their non-exempt assets. The best part is that a big part of those people who decide to take this step usually have only exempt assets.
The latter may include their vehicles, jewelry pieces, some household goods, clothes, furniture, public benefits, such as social security, and so on. When it comes to non-exempt assets, you need to know that they involve your second houses, cars, expensive musical instruments, and other similar valuables.
In summary, it is obvious that filing for Chapter 7 bankruptcy may have its pros and cons. If you want to ensure that this option is suitable for you, it makes sense to take some time and consult reliable legal representatives. This is how you are going to make a more informed decision.