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Bankruptcy Law Chapter 7 refers to the process of liquidation of a debtor’s assets in order to pay debt. The individual’s non exempt assets will be distributed among creditors, and everything will be handled by the bankruptcy trustee.

One thing about Bankruptcy Law Chapter 7 is most people who qualify under it have few or no valuable assets that can be liquidated. The owner can keep any house, car, or real estate property in which the resale value or equity is very little. Although debt is cleared, getting a mortgage after bankruptcy would be difficult in the future.

 Most of your unsecured debt will be erased or discharged after filing for Bankruptcy, whether or not you have assets worthy of liquidation. This may include credit cards, medical bills and personal loans. However, not all your financial obligations can be discharged such as student loans, family support and criminal fines.

 Listed below are the criteria for Bankruptcy Law Chapter 7 eligibility for an individual, married couple, or business organization.

 -You have not received a Chapter 7 discharge in the last 8 years.

 -In the last 6 years, you have not filed for chapter 13 discharge.

 Within the last 180 days, a Chapter 7 petition has not been dismissed.

 -You haven’t deceived your creditors or bankruptcy court in any way.

 -Your income is equal or below the median income in your state.

 For income and eligibility, you are required to take a means test.

 The first thing you need to is finish a credit counseling session with a certified agency of the United States Trustee, after being qualified to file Bankruptcy.

 After counseling comes the paperwork. When filing for Bankruptcy Chapter 7, you will have to prepare the required documents, and fill out official bankruptcy forms. This will include a list of your assets and liabilities, details of your income and expenses.

 Whether you filed for Bankruptcy Law Chapter 7 or any other chapter in the bankruptcy code, there will be a record of it on your credit report for 10 years. It may take several years before you can re-establish your credit. It might be best to thing things through and do your research before actually filing for Bankruptcy Chapter 7.