Brief Overview of Chapter 7 Bankruptcy

June 3, 2011 - PRLog -- Many people do not realize, but bankruptcy is actually a blanket term to discuss many different types and forms of debt relief. When a person is interested in filing for bankruptcy, they will actually need to make a decision as to which chapter they will file. These chapters will vary and have different nuances – there are some chapters that are geared towards the individual and there are others that are specifically created with businesses in mind. Similarly speaking, some chapters are created to liquidate assets while others focus more on reorganization.

Chapter 7 is one of the most common forms of bankruptcy throughout the entire nation. Typically known as “straight bankruptcy,” this type of bankruptcy allows a debtor to completely wipe their slate clean through liquidation. Other chapters, such as Chapter 11 and Chapter 13, instead focus on reorganization of the debt and allowing the debtor to get on a more realistic payment plan.

In a Chapter 7 bankruptcy, the debtor will liquidate many of their assets to pay off their debts. This, however, does not mean that they will lose everything that they have. There is a commonly perpetuated myth that if a debtor files for this chapter that they will be left without a penny to their name. This is untrue. There are many exemptions that will allow for a debtor to keep their property. For instance, many homes and vehicles will be exempt from liquidation.

It is also important to realize that not every single person is eligible to file for Chapter 7. As this chapter is extreme in nature, it is saved for those who truly are unable to pay off their debts. If a debtor is in debt, but has enough income that they can feasibly pay off their creditors, they will typically not qualify. To determine whether or not a debtor is eligible, they will be required to participate in a means test. This will determine their disposable income and whether or not they’re above the state median income.

If you are currently struggling with debt in the Queens area, it is highly recommended that you do not hesitate to contact a knowledgeable Queens bankruptcy lawyer to discuss all of your options. It is important to realize that there is not a blanket solution; to determine what will be best suited for your individual situation you need to have an experienced attorney on your side to evaluate your case. Therefore do not waste another minute! The sooner that you get a high-quality lawyer on your side, the sooner that you can seek your optimum outcome.

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At the Bronson Law Offices, they recognize how difficult it can be to deal with debt and they are fully devoted to ensuring that their clients receive the solutions that they deserve. If you are currently considering filing for Chapter 7, Chapter 11 or Chapter 13, it is highly recommended that you contact a high-quality Queens bankruptcy lawyer from their firm. They know what is on the line and they will stop at nothing in their efforts to provide you with effective and accessible legal advice. So don’t wait! If you have been struggling with finances and are seeking to get your feet underneath you once more, it is highly encouraged that you contact them today. The sooner they get involved, the sooner they can help you to seek your desirable and optimum resolution. Visit their site at http://www.queensbankruptcylawfirm.com today.