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