No one wants to declare bankruptcy, but there are just some instances wherein one cannot avoid it. In many cases, Ogden residents file for Chapter 7 bankruptcy protection in order to clean their lives off of most of their debts and start over new.
However, because of its complexity, it is better to have someone who specializes in such cases help you, especially since this type of protection comes with certain drawbacks, such as property loss and poor credit score.
What Chapter 7 Bankruptcy is all about
Also known as straight bankruptcy or liquidation, Chapter 7 bankruptcy refers to the process of selling the assets of a debtor in order to come up with enough money to pay for a borrower’s debts.
There are eligibility requirements, and the rules differ from case to case.
Can you file for this type of bankruptcy?
The “means test” is one of the most important eligibility requirements you have to pass in order to qualify for Chapter 7 bankruptcy. In the event you do not meet all of the requirements for Chapter 7, the Ogden court has the power to turn it into a Chapter 13 bankruptcy case.
Exemptions
Certain laws surrounding bankruptcy provide some sort of protection to the debtor’s assets. These basically prohibit their collection and sales in order to pay off creditors. Referred to as exemptions, some of these protected assets include real estate properties like homes, vehicles, and specific personal properties.
How an attorney specializing in Chapter 7 Bankruptcy can help
Whenever you file for bankruptcy, whatever type it may be, you should have a pro who understands the process entirely on your team. Getting the right assistance, guidance, and supervision will help you increase your success chances. Make sure you consider seeking a lawyer who specializes in Chapter 7 Bankruptcy in Ogden so that you will have better chances of coming out of it successfully.