Defeat Bankruptcy

Chapter 7 Bankruptcy Law Can Help You Get Out of Debt

Under Chapter 7 bankruptcy law, debtors are afforded the protection of an automatic stay, which means that all collection proceedings against them must stop as soon as the creditors receive notification of the filing. This is useful for people who are at risk for repossessions of personal property or those whose homes are being threatened by foreclosure.

There are certain guidelines set out under Chapter 7 bankruptcy which require your cooperation. For one, you must actually qualify for Chapter 7, and you will have to pay a filing and administrative fee to the court. In some circumstances, those fees can be waived or broken into installments if you can prove to the court that it’s necessary. After filing your initial petition and supplying the list of creditors, you have a time limit to submit the rest of the required forms for your case.

Chapter 7 bankruptcy law specifically disallows for repeat filings within a six month time frame, so you want to be careful to avoid a dismissal because you did not get your paperwork to the court on time. Chapter 7 bankruptcy law also stipulates that you must attend debt counseling and provide a certificate of proof as well. These are just some of the things that are required of you to file Chapter 7 bankruptcy, and when done right, the law offers you a chance at a fresh start…completely debt free.