Chapter 7 bankruptcy will discharge an individual from a good number of debts. However one will still be liable for particular obligations. After the filling process is over and a court of law has ruled in favor of an applicant a person will start the journey back to financial soundness. Credit card debt mortgages and car loans are just but some of the liabilities that can make a person to become bankrupt.
Before any action is taken by a body of judicial authority it has to be verified whether or not one qualifies to be given reprieve under this section of the law. The ideal candidate is one who is indebted and has very few valuable assets. An individual who has some worthy property will be compelled to make a filling under another section.
There are different types of bankruptcy filings. It is up to a person to take time and carry out research work so as to know more about this niche. To make matters easy one should consult a bankruptcy attorney. Such a professional will offer useful advice. Information that has been obtained from a real life expert can be relied upon for the purpose of decision making.
An informed person will not be confused by legal intricacies. He will understand what is happening in court and will know what a lawyer implies by using particular terms. An advocate will represent a person in court but one should still strive to be as enlightened as possible. For some helpful tips, visit here.
It will take some time before a judge makes a decision. The final verdict will succeed many weeks of submissions. Both sides have to present arguments and the party with the strongest case will win the day.
If the solicitor of a client justifies the need to declare a person bankrupt under chapter 7 the individual in question will no longer be liable for mortgages and car credit among other types of loans. However the issue of bankruptcy can remain in credit reports for up to 10 years. After a few months it will be hard for the bankrupt individual to acquire any kind of credit. After half a year has elapsed many bad credit lenders will be willing to finance a person who was previously cleared of all debt.
Some debts cannot be erased irrespective of the bankruptcy filing that has been submitted. A person will have to pay every cent of student loan even if one is heavily indebted. One cannot be absolved from paying child support. This is because; the law requires a parent to cater for the basic needs of his/her children.
The purpose of chapter 7 bankruptcy is to give one a fresh start in life. Indebtedness not only destroys personal image but also makes it hard to meet day to day financial obligations. Therefore the process of writing off debt can save the life of a person.
It will be up to the forgiven party to strive to stay debt free. Credit cards are a big no because they are usually the cause of many problems. One should not leave beyond his means.
There are different kinds of bankruptcy filings. Chapter 7 is suitable for anyone who does not have high value properties. Under this kind of arrangement some liabilities will be written off by a court of law.