If filing for bankruptcy is a possibility for a debtor in order to get out of a financial crisis and start anew, then Chapter 7 of the Bankruptcy Code will be the way to do it a bit faster. Under Chapter 7 of the Bankruptcy Code all property which is considered to be non-exempt will be sold and the proceeds distributed to the creditors. In most cases where Chapter 7 is brought into question there will be no assets to lose so it will be really faster.
This method is also referred to as liquidation as you will turn your assets into money. Chapter 7 Bankruptcy is the most well-liked form of bankruptcy filing and will makes up about 65% of all bankruptcy filings.
As mentioned earlier, it is one of the faster ways; especially if you don't have to get other asset owners involved. Chapter 7 will let you get rid of your debts in months of the attorney filing a bankruptcy petition as opposed to years that go along with filing for Chapter 13.
This kind of bankruptcy functions through obtaining a trustee to collect all of your non-exempt property, sell the assets and distribute proceeds from this sale to appropriate creditors on your behalf and you won't have to pay them in order to do it. Most of the time this implies that you will lose all your assets, so it will be better for you to think before you do it.
Under Chapter 7 Bankruptcy, the debtor will receive a discharge on all dischargeable debts. Some of these debts include: child support, taxes and student loans that are discharged under Chapter 7 Bankruptcy.
An further advantage with Chapter 7 bankruptcy is that through signing a reaffirmation agreement you will be able to continue to pay for a car loan or a mortgage. This agreement will be put in place because as per the US Government Bankruptcy Code a debtor could be allowed to retain some or the entirety of his property.
The best kind of people for this type of bankruptcy plan are those that don't have a steady cash income. To file under this condition, you will have to get a lawyer to represent you in court and simply do as they advise. Make sure the information you provide is always complete and accurate.
Find out more on how to successfully recover from bankruptcy: Getting Yourself Out of Debt