Bankruptcy Liquidation

By Paul Atredki

While it can take as much as six months, a Bankruptcy liquidation or a Chapter 7 Bankruptcy is a process where you can legally eliminate nearly all of your debt most of the time. Bankruptcy liquidations are available to businesses, individuals, married couples, or even a business organization, they are all able to file under a Bankruptcy Chapter 7.

There are some factors you need to keep in mind for you to qualify such as:

If you have been turned down for a Chapter 7 in the past 180 days, If you have entered into a Chapter 7 Bankruptcy in the past 8 years or you have been involved with a Chapter 13 discharge in the past 6 years.

You will be just fine if you have all the above down correctly and your income is at the median or below the median.

The problem is though it’s not as easy as just filing a petition and waiting on the court to pass the petition, when you are in a bankruptcy liquidation you have to sell off some of your property to remove as much debt as you can.

Bankruptcy laws within each state will say just what can and can't be taken, most of the time things you absolutely need like household items, clothing and tools of your trade will not be taken. When you have very little property that can be collected you may be deemed as "no asset" and you will not have to pay anything.

Before you go about filing a bankruptcy liquidation, you must get some counseling for your credit from an organization which is approved by the United States Trustee. After you do that you then can go forth and complete the all the needed forms for bankruptcy, they usually ask about the amount of income you are bringing in and where you earn it from as well as your expenses, debts and assets. These forms need to be filed with a certificate from your credit counseling session in a bankruptcy court near you.

After your case has been filed the court will proceed by appointing a trustee to you who will liquidate your assets that aren't protected via a bankruptcy liquidation auction or bankruptcy liquidation sale and then give the payment to all of your creditors. After around 7 days past when you have filed your creditors will receive a notice of a creditor meeting. While this meeting does not last longer than 10 minutes or so you will be under oath while you are questioned by the trustee in relation to all the info on your bankruptcy papers.

The final step of the bankruptcy liquidation process is that your debt will be discharge, but certain things such as student loans, tax debt, and child support will not be discharged. After you go through a bankruptcy discharge, you are completely free of the responsibility to pay off any of the debt.

It is best to browse the internet further if you still require more information on bankruptcy liquidation.

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