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The cost of bankruptcy can be categorized by several different factors. Obviously there is the financial cost to file Chapter 7 Bankruptcy which can range depending upon filing fees and attorney fees if any as well as the state you live in. Filing Chapter 7 Bankruptcy costs start around $200 and can go up from there. Then of course, when considering the "cost" of any bankruptcy, one must take into account the ramifications that it will have on your credit. Chapter 7 Bankruptcy stays on your record for 10 years and may make it difficult, although not impossible, to obtain car loans, home loans or credit cards in the future. However, on the other hand, if you're in a situation where you've fallen behind in your obligations, your credit may not be stellar at this point anyway. Sometimes filing bankruptcy can be the best option simply to wipe away debt and start fresh and new.
Chapter 7 bankruptcy is the type of bankruptcy filed to liquidate assets in order to pay off debts. Businesses may file Chapter 7 as well as individuals. This type of bankruptcy is a total release of indebtedness, thus not requiring the debtor to pay back any of the monies discharged under the bankruptcy case. The hazzard to filing Chapter 7 bankruptcy however, is that a creditor may force the sale or liquidation of assets in order to satisfy judgments and debts.
Under Chapter 7 bankruptcy law, this type of discharge of debts can totally eliminate and wipe clean the slate of any debtor. It is the most popular form of bankruptcy because it allows a fresh start. Discharge of all debt usually takes between 4-6 months from the date of filing. Items that are not dischargable, however, are things such as child support and alimony, student loans not older than three years, tax obligations not older than three years, recently made purchases of a substantial nature and property executed contracts for property and liens.
Chapter 7 bankruptcy is a type of bankruptcy that allows a debtor to relieve him or herself of an overwhelming debt load in order to pay off creditors. Chapter 7 is a complete and total liquidation of a debtor's assets in order to pay off their creditors. This is the most common form of bankruptcy for an individual. The downside of filing a Chapter 7 bankruptcy proceeding may be the risk of losing their home and vehicles. However, this type of liquidation will clear a debtor completely out from under the obligation as well.
Things one should consider when contemplating filing chapter 7 bankruptcy is whether there is any hope of repaying the debts to creditors, whether or not there are any co-signors to any notes in question, and whether or not there are any eminent court actions involved. Filing a chapter 7 bankruptcy proceeding stays all other legal actions and thus eliminates some stress for the debtor.
There are Chapter 7 bankruptcy forms available to those of us that are not lawyers in several different places. You can find these forms in some office supply stores, however, there are also online form resources that can provide these forms. Under Chapter 7 bankruptcy law there are certain procedures and timelines that one needs to be aware of when contemplating filing chapter 7 bankruptcy or any bankruptcy for that matter. Be sure, if you're doing the filing on your own, to consult with legal sources for the laws that govern your state.
|Sheri Ann Richerson|