Eligibility To File Chapter 7 Bankruptcy
If you are planning to file for Chapter 7 bankruptcy then first of all check out if you are eligible to file for it and also know the procedures and rules for filing. Not everyone can file for Chapter 7 bankruptcy. There are certain types of criteria one has to meet. |
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In a Chapter 7 bankruptcy, most of your assets are liquidated so that your debts are paid off. All debts incurred until the date of filing for bankruptcy and the ones listed in your case sheet are disbursed off by paying off the debt and liquidating your assets. So, after the bankruptcy case is through you are basically free of anymore debts and obligations.
In order to file for Chapter 7 bankruptcy, you should be an individual, partnership or a company. You should have considerable properties in the form of deposits and immovable properties that can be liquidized. The asset should be worth at least 60 percent of the debts in value. If you take something to the court that does not have any value and none of your debts can be cleared, the case will be dismissed right away.
So there is a particular criterion that the assets you have listed have to meet. This is the most important criteria to be met while filing for bankruptcy. Also, the court will investigate if your really are in a position to file for bankruptcy and you have to go through credit counseling and check out all other possible alternatives that exists, this is a rule and part and parcel of the bankruptcy filing procedure.
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