Why file chapter 7 bankruptcy

If filing for bankruptcy is considered to be an opportunity for a debtor to end all his debts and anew; then filing for chapter 7 bankruptcy is a way to accomplish the same comparatively quicker. Filing under chapter 7 bankruptcy means that the authority will auction out all non-exempt asset of the debtor and distribute the money among the creditors. Most of the time, when a debtor goes for chapter 7 bankruptcy, he or she will be left little or no assets to lose and so the entire process finish quicker.

There are several different kinds of bankruptcy that a debtor would want to apply for, but it can be a daunting task to decide on the right law that will suit your requirements. As you can well understand from the title, this article is to focus on how to file chapter 7 bankruptcy.

Some things to take note of when applying for chapter 7 bankruptcy in the correct manner:

- Bankruptcy should be the last option and avail it only when you realize that you are left with no other option.

- Consult a bankruptcy attorney. An attorney is a professional and has enough experience and ability to help you through the process.

- Credit counseling is a must.

- Filing for petition if needed. Doing so will prevent your creditors from taking any legal action against you.

- Ensure that you complete all your paper works properly

- Ensure that you make all payments of your fees on time.

- After a petition if filed, a meeting will be held in about a month's time. The creditors will be present and they might question you regarding your assets and financial capacity which you have to answer. It is very important that you attend this meeting.

- In the revised bankruptcy laws, the debtor who files for chapter 7 bankruptcy will have to undergo a debtor financial management educational course held by credit counseling agencies.

So to conclude, once you have adhered to the above steps you should be well on your way manage your debts.

Now you know how to file chapter 7 bankruptcy, best of luck to you!