"Chapter 7 Bankruptcy Law Information"

Chapter 7 is often called liquidation or "straight bankruptcy". It used to be very “popular” because all of our debts ware canceled if your application was confirmed. For people considering bankruptcy it will now be a more difficult process.

You have to go through credit counseling before you are allowed to file for bankruptcy.

Here is some new Chapter 7 bankruptcy law information which may change your mind, or you could make it work for you.

With new bankruptcy law Chapter 7 is hard to apply for if debtor has income above average of the state he lives in. Your current monthly income consists of your average income for the last six months.

That means that if you have recently lost a job your current monthly income will be much higher then what it really is, and it will make it more difficult to pass to pass the first test. If that should be the case with you, wait for up to six months before applying for Chapter 7.

When you calculate your income compare it with median income of the state you live in. If you have calculated that your average monthly income is equal or lower then median, you can apply, and if it is higher you will have to pass the means test if you want to qualify under new bankruptcy law Chapter 7 regulation.

When you apply for Chapter 7 you will be required to account for all your assets and liabilities which include both secured and unsecured property. Then in the next 30 days you have to declare whether you intend to keep or hand over those assets. You have to do that within 45 days of your filing date.

You will also have to provide a list of all your creditors, so that a court can arrange a meeting with you and all your creditors. At any time during the meting your creditors have the right to voice their doubts and concerns and try to get your application rejected. For example if you knew that you have no way of paying back the loan but have still  raised one, it is then very likely that a creditor will object to you being allowed to file for Chapter 7.

Be sure to get as many Chapter 7 bankruptcy law information from your lawyer as you can, and also make sure to provide any useful info to your lawyer, do not withheld any important information from her or him.

However if your proceeding goes through ok and no legal objections can be made, then after about 60 days you should receive a discharge of debt notification.
A trustee will then be appointed to make account of all your nonexempt property and sell them, trustee will then distribute the money to the creditors. You may be allowed to keep a real estate or some other personal belongings but it depends on the laws of the state you live in. You should also know that under the new law you have to live in a certain state for at least two years before laws of that state can be applied in case of bankruptcy.

That’s for real estate, what about homestead exemption?!

• In case of homestead exemption you have to live in current state for the last 40 months if you want to have your personal things exempt from selling. When proceeds are distributed among your creditors you will be free of all your debts and released from personal liability.

You should also know that if have already filed for bankruptcy in the last six months and that application was denied, your current application is likely to be rejected. Also if you have already been approved or rejected filing for bankruptcy in the last six years under new bankruptcy law Chapter 7 your application will most likely be rejected. In any case be sure to consult your lawyer about this.

Finally if all goes well, all your debts will be cleared and you will have no obligation anymore to pay for the debts discharged. But be aware that it will be in your credit report for up to next ten years. I hope that you have found some new and useful Chapter 7 bankruptcy law information in this article, and that it will help you to get out of debt faster...

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