It is not uncommon for a large corporation to file for bankruptcy these days. However, not only large corporations will file for bankruptcy; today, even small businesses with limited resources are facing bankruptcy. Many good businesses are on the verge of collapsing as a result of last year’s economic crises around the world. So the only option is to make sound decisions and tactical moves while maintaining regular interaction and communication with a lawyer and a bankruptcy attorney, as well as staying up to date on new financial scriptures. There is a lot of material available about bankruptcy, but before you dive into the financial scriptures, it’s a good idea to understand the different forms of bankruptcy chapters. click to see
Chapter 7 bankruptcy is one of the most useful chapters. It’s a form of bankruptcy that’s also known as “liquidation” or “straight” bankruptcy. This chapter is designed for debtors who are having financial difficulties. The most common issue that this type of debtor faces is difficulty repaying their existing debts. For Chapter 7 bankruptcy, you must pass a single test, known as the Means Test, in order to be considered eligible for this form of bankruptcy relief. So, if you don’t pass the test, you have the option of filing a Chapter 13 bankruptcy or converting a Chapter 7 bankruptcy to a Chapter 13.
It’s also important to understand that the object of filing chapter 7 is to get your debts discharged from your creditors. However, if the Court discovers that you committed some kind of crime, you might be refused a debt discharge. Although, regardless of whether you discharge or not, you should be aware that there are already debts that can be discharged.
You may be liable for debts such as taxes and student loans, supported payments and alimony, criminal restitution, and debts for death or personal injury incurred by driving under the influence of drugs or alcohol.
Personal loans, credit cards, dentist fees, and other debts of a similar nature may be discharged by Chapter 7 bankruptcy. The fact that you are normally expected to surrender those types of property makes this discharge much more painful. However, there are also individuals who will apply for Chapter 7 bankruptcy and have an alternative remedy for any debts that are not washed out by this condition.