| Bankruptcy liquidation also known as Chapter 7 | | | | necessary bankruptcy forms, which will basically ask |
| Bankruptcy is a legal process where most if not all of | | | | you to state the source and amount of your income, |
| your debt can be eliminated. It may take four up to | | | | monthly expenses, debts, and information about your |
| six months and currently costs $299 to file. | | | | assets. You need to file these forms along with the |
| Bankruptcy liquidation can be used by individuals and | | | | certificate of your credit counseling session with your |
| businesses. | | | | local bankruptcy court. |
| However, it is not as simple as filing a petition and | | | | Once you have filed for bankruptcy liquidation, a rule |
| the court grants the request. In bankruptcy | | | | called automatic stay takes effect which can be very |
| liquidation, the debtor has to give up certain | | | | helpful in urgent situations. It temporary protects you |
| properties to be sold or liquidated in order to pay off | | | | from lawsuits, wage garnishments, eviction, |
| as much of the debt as possible. The bankruptcy | | | | foreclosure, and disconnection of utilities supplies. |
| laws in your state dictate what property can and | | | | When you file your case, the court will appoint a |
| cannot be taken away from you. In general, | | | | trustee whose duty is to liquidate your non-exempt |
| properties of necessity such as clothing, household | | | | assets and distribute payment to your creditors. A |
| items, and tools you need for your profession are | | | | week or so after you have filed you and the |
| considered exempt. When you do not have much | | | | creditors you have listed will be sent a notice |
| property that can be liquidated your case will be | | | | informing you about the creditors meeting. During this |
| classified as no asset and there will be no payment | | | | meeting, you will be under oath while the trustee |
| distribution to your creditors. | | | | questions you about the information you have |
| In order to be eligible, you should not have received | | | | provided in your bankruptcy papers. Usually, this |
| a chapter 7 bankruptcy discharge within the past 8 | | | | meeting does not last more than 10 minutes. |
| years or a chapter 13 bankruptcy discharge within | | | | The last stage in the bankruptcy liquidation process is |
| the past 6 years. Your monthly income should be | | | | the discharge of debt. You must take note that |
| lower or equivalent to the median income of your | | | | certain debts may not be eliminated such as family or |
| state. You will be required to take a means test to | | | | child support, student loans or tax debt. Once you |
| determine your eligibility. | | | | have received bankruptcy discharge, you are free |
| Before filing for bankruptcy liquidation, you will have | | | | from any legal obligation to pay the creditors of your |
| to get credit counseling from an agency that has | | | | discharged debt. The record of your filing will be on |
| received approval from the United States Trustee. | | | | your credit report for the next 10 years. |
| Afterwards, you can proceed with filling out all the | | | | |