Chapter 7 Bankruptcy
The time is really troubling and in this difficult economic situation, there are thousands of Pennsylvanians who are struggling. While they are dealing with the piling up expenses like medical bills, credit card bills, utility bills, mortgage amount, and so on, businesses, families and couples are facing a really hard time maintaining peace among them. If you are one of those people who are suffering and considering a fresh start for your finances, then you need to file for chapter 7 bankruptcy. Consult our experienced Pittsburgh bankruptcy lawyer today so that you can deal with the situation properly.Chapter 7 Bankruptcy Definition
In the U. S. bankruptcy is governed by federal law. The name Chapter 7 bankruptcy comes from the fact that the regulations of this type of bankruptcy are under chapter 7 of U. S. Bankruptcy Code. It is also known as straight bankruptcy, ordinary bankruptcy or liquidation bankruptcy. While liquidation describes the process, the rest of the names come from the ease of the process.
After the petition filing, the court appoints a trustee for the case. They are responsible for evaluating the assets, properties and income of the debtor. They can also sell of the property to pay the creditors, the individuals and organizations, the debtor owes to. Once the payment of the debts is done, the debtor gets the discharge. If you are hiring a skilled Pittsburgh bankruptcy lawyer, you will get to retain most of your assets and properties too.The Debts That Bankruptcy Covers
With filing chapter 7 bankruptcy, you get a fresh start by getting rid of some dischargeable debts. This type of filing helps you deal with the unsecured debts so that your finances can come back in a better place. The dischargeable debts for chapter 7 bankruptcy include but not limited to:
- Car accident claims debts
- Medical bills
- Credit card bills
- Past due rent
- Past-due utility bills
- A personal loan from friends and family members
- Debts for small business
- Social security overpayment debts
Some of the debts won’t be discharged with Chapter 7 filing. That can include:
- Child and spousal support
- Criminal files and restitutions
- Home mortgage and car loans
Even though it is described as the simplest way of bankruptcy, yet it is a very complex procedure, involving hundreds of regulations and necessary documentation. If you are planning to do the filing yourself, then there are chances that you will make a mistake that might lead to dismissal of the case. That is why you need to hire a Pittsburgh bankruptcy lawyer who will guide you at every step of the case.
For some basic ideas about Chapter 7 bankruptcy filing, you can go through the following points.
- Paying the chapter 7 filing fee is a must unless it has been waived.
- Filing the case at the fight court is necessary according to where you live.
- Completing various bankruptcy forms is necessary that will include the list of debts, income, assets, properties and so on.
- Going for pre-bankruptcy credit counseling program is a must. You need to submit the certificate.
For more guidance and insights into the process, get in touch with us today at Pittsburgh Bankruptcy Law Group.