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How Chapter 7 Works
Bankruptcy is a legal process through which people can get their debts discharged or restructured if they no longer have the means to them off. Under this legal procedure, assets are liquidated to clear debts. Individuals as well as business’s can opt for bankruptcy as a last resort during a financial crisis. There are three chapters of the bankruptcy code, chapter7, 11, and 13. If we take a detailed look at chapter 7 of bankruptcy, it provides the code for liquidation of assets. Debtors can file for bankruptcy under this code if they meet the eligibility criteria. The procedure for this legal step comprises of various documentation and proceedings, pointing out to the need of bankruptcy lawyers. These are skilled experts who have acquired certification in this area of law and are dedicated to helping their clients successfully file for bankruptcy.
Bankruptcy cases cannot be filed in a state court; there are separate bankruptcy courts that deal with such cases only. Chapter seven comprises of steps such as filing a petition, documenting all schedules of principal assets, proving a statement of affairs to the court, and income statements. With the vast amount of red tape and requirements involved in filing a case under chapter 7 of bankruptcy, it is helpful to seek legal help of a bankruptcy lawyer to manage all the legal issues and help you understand what to expect in your case. You can find many attorneys and how chapter 7 works lawyers in every state.