What is Chapter 7?
You may have heard the legal term numerous times, but what is Chapter 7? If you are slightly confused as to the terminology surrounding bankruptcy, this article will help to clear the haze.
Often, understanding legal terms can be somewhat daunting. If you have ever tried to look over a legal contract, you may remember how difficult all of those words and phrases can be. While it would make life simpler if these terms were put into everyday wording, this isn’t going to happen anytime soon. Instead, it is up to you to understand all of that legal speak. Prior to filing bankruptcy, it will help to know a thing or two about the various “chapters” that may be applied to your case. So, what is chapter 7?
Experts Your Questions Now.
Simply put, when you are placed under this type of protection by the court, all of your debts are turned over to a person that will become in charge of them. This person is known as a “trustee.” It is then up to the trustee to sell anything of value that you have. The proceeds from the sale of your items will be split up amongst your creditors as the trustee sees fit. At this point, you will then be forgiven of all the debts that can be forgiven – taxes, child support, alimony, and school loans cannot be erased.
Since the trustee will decide which of your assets to sell, the creditors cannot come after you for any other assets that have not been detained by the trustee. Once the assets have been sold and distributed, a creditor cannot hassle you for any other assets. Every person is entitled to file this sort of claim every seven years. While this may seem relatively straightforward, it is actually quite complex. Remember all that legal jargon that we talked about a few paragraphs ago? Well, there will be a whole lot more of it once bankruptcy is filed. This is precisely why you must contact a bankruptcy lawyer prior to filing for any kind of insolvency. Now that you know the answer to the original question (what is chapter 7?), you will be able to have a better idea regarding this type of decree.
From A Bankruptcy Lawyer Now.
Many people may think that they do not need a lawyer in order to file for bankruptcy. However, those that neglect to hire a lawyer often find themselves in hot water. The facts contained in this article may help you understand certain terms a bit better, but hiring a lawyer is a necessary step.
What is chapter 7? Well, now you have an idea as to what this type of term means. Bankruptcy is never to be taken lightly, though understanding certain aspects of it will help relieve some stress.