Chapter 7 bankruptcy also referred to as ‘straight bankruptcy’ is a situation where the debtor hands over all their surviving property to a bankruptcy trustee. The trustee then converts it in to cash in order to allocate it among the creditors. a release of all dischargeable will make the debts within approximately four months. Theories aside, many people who claim chapter 7 bankruptcy have relatively no large assets to lose as they have lost it all . This therefore is a means that would enable the bankrupted party a new beginning.

The debtor in order to be able to receive Chapter 7 bankruptcy, must be an individual, partnership of corporation or any other business unit. A sole individual though cannot file under chapter 7 bankruptcy information. An exception is made only if the debtor receives credit counseling from an approved agency within 180 days before filing for chapter 7 bankruptcy. The debtor must fill out a petition with the bankruptcy court regarding their assets in order to receive Chapter 7 bankruptcy. A schedule of assets and liabilities, a schedule of current income and expenditures and a statement of financial affairs with the court must also be filed in addition .
Ah honest individual should be given a new beginning is the concept behind bankruptcy. Debtor therefore is not legally discharged for the liabilities. As opposed to the previous mentioned case under the chapter 7 bankruptcy it is only an option for individual debtors. Though this is the general procedure, an individual’s right of discharge is not to be taken for granted as some categories of debts are not discharged.

It is a smart option to figure the best choice for you regarding the chapter 7 bankruptcy, with the help of a qualified attorney. First though you need to figure out for yourself if you actually need to file for bankruptcy. Online evaluation forms are also available. Always make sure that you provide your attorneys with complete and correct information to gain a better evaluation on your case. The recept of all the debts for the debtor should also be made in chapter 7 bankruptcy. Therefore though in some cases this would mean losing all ones assets, in the majority of cases, this isn’t so. Hence a bankruptcy attorney prior to making any rational decisions is safe.

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