SOLUTIONS FOR CHAPTER 7 - Conditions For Filing Chapter Thirteen Bankruptcy  

     Are you planning to file for bankgruptcy? What are conditions for filing chapter thirteen bankruptcy? Are solutions for Chapter 7 your answer to your finance problems?

 

     If you are filing for bankruptcy under Chapter 7 or 13, then you will have to pass a "Means Test". This test is to identify those debtors who have the financial capability to pay a significant portion of their debts.

     A means test involves the comparing of a debtor's income to the median income of the state where the debtor resides. This calculation identified whether a debtor can file Chapter 7 liquidation or Chapter 13 repayment case.

     If you are filing bankruptcy, you should be aware that a lot of paperwork is required. You would have to file a petition and several other forms in the bankruptcy court in your area.

      The forms that you file along with the petition will contain a list of all your assets, debts, income, and expenditure along with personal and financial information. You would also be required to file a certificate of credit couseling, tax returns or transcripts of tax returns for the latest tax year, copies of pay stubs, and proof of income received 60 days before the filing and statement of current monthly income. If you anticipate any change in your income or expenses, you would have to file those details too.

       Another thing that you should remember to file is your tax returns with the IRS while your bankruptcy case is pending in the court.

       In Chapter 7, that is liquidation case, the court will appoint a trustee to represent the interests of the creditors. A month or so after filing for Chapter 7, you are required to attend a meeting with the creditors along with the trustee so that you can answer any questions that are raised regarding your assets and debts. However, in most cases the creditors do not attend these meetings. Once this meeting takes place, the trustee has to sell the property and proceeds from that are divided among the creditors. After your property has been liquidated, the court will have a final hearing and discharge your debts, which means that you are no longer owe your creditors any money legally and they are prohibited from trying to collect any unpaid amount.

         Chapter 13 bankruptcy case is usually for wage earners. You have to file a plan for repaying your debts with the bankruptcy court. The court has to approve the plan and once the approval is done, you have start sending the payments to the trustee appointed by the court. The trust then pays the creditors based on the repayment plan approved by the court. Once you have repaid all the creditors according to the plan, a hearing is held and you are formally discharged. Chapter 13 is more preferable to Chapter 7 as it allows the debtor to keep more valuable assets like a home or property, and you can work out a plan to repay your creditors over three to five years.

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SOLUTIONS FOR CHAPTER 7 - Conditions For Filing Chapter Thirteen Bankruptcy
 
 
 


 

 

 
   
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SOLUTIONS FOR CHAPTER 7 - Conditions For Filing Chapter Thirteen Bankruptcy )
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