Bankruptcy Chapter Seven Exemption - Why is it important
Do you have debts that are hard to pay? If so, the hardest part could be filing for bankruptcy. Many people prefer Chapter 7 Bankruptcy. In this chapter, all your non-exempted assets will be sold or liquidated that will be an avenue to pay all your debts. This chapter is supervised by the authority and the court will appoint a a person known as a trustee to sell all the non-exempt assets owned by the debtor and distributes between the creditors. Bankruptcy chapter 7 exemptions refers to assets that you get to keep when the bankruptcy is filed. Although chapter 7 is the least favorite method of bankruptcy, with the help of exemptions, a debtor could have a chance to reduce their personal liability and will be able to keep some of their belongings.
In this exemption the debtor keeps the property that he is allowed to keep. This list will be provided in the Federal Bankruptcy Code. The debtor's property will be divided as exempt or non-exempt when the state trustee files a property exemption report. Take note that while the basic law may be the same, some exemptions may vary in other states.
Secured debts are first paid off but if the debt is unsecured, there is a chance that the creditors of unsecured debts might not get any money at all. The trustee will pay the right creditors in the right amount. Note that to enjoy the benefits of bankruptcy chapter 7 exemptions, the debtor must file the case in the state where he/she lived for at least 730 days before filing for this type of bankruptcy. Or the debtor may also file the case in a state where he/she has previously lived for more than 180 days, up to 2 years.
There are also the Federal exemptions which will cover retirement benefits, death disability benefits, survivor's benefits and miscellaneous. Although, keep in mind that these may not be available in all states.
Bankruptcy is probably the worst scenario, your credit score will fall because of it. You will lose all your personal belongings and you need start a new leaf, both personal and business wise. Remember, bankruptcy should always be your last alternative.
However, if in a worse case scenario, then try to learn more about bankruptcy chapter 7 exemptions as your personal loss can be reduced to a minimum, and get to pay off your debts as soon as possible.
In this exemption the debtor keeps the property that he is allowed to keep. This list will be provided in the Federal Bankruptcy Code. The debtor's property will be divided as exempt or non-exempt when the state trustee files a property exemption report. Take note that while the basic law may be the same, some exemptions may vary in other states.
Secured debts are first paid off but if the debt is unsecured, there is a chance that the creditors of unsecured debts might not get any money at all. The trustee will pay the right creditors in the right amount. Note that to enjoy the benefits of bankruptcy chapter 7 exemptions, the debtor must file the case in the state where he/she lived for at least 730 days before filing for this type of bankruptcy. Or the debtor may also file the case in a state where he/she has previously lived for more than 180 days, up to 2 years.
There are also the Federal exemptions which will cover retirement benefits, death disability benefits, survivor's benefits and miscellaneous. Although, keep in mind that these may not be available in all states.
Bankruptcy is probably the worst scenario, your credit score will fall because of it. You will lose all your personal belongings and you need start a new leaf, both personal and business wise. Remember, bankruptcy should always be your last alternative.
However, if in a worse case scenario, then try to learn more about bankruptcy chapter 7 exemptions as your personal loss can be reduced to a minimum, and get to pay off your debts as soon as possible.
About the Author:
Want to declare bankruptcy? Thinking of declaring under Chapter 7? If so, find out more information on bankruptcy chapter 7 exemptions. You can retain some assets for yourself! Visit our website for more information today!
posted by Debt Consolidation Loan at
9:36 AM
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