|
When comparing the time required to complete the discharge procedure
and truly begin financial recovery, why would anyone choose Chapter 13?
Compare 4 months to 60 months under court supervision, and little
justification from a debtor's perspective supports voluntary plans. For
this reason, lobbyists representing national financial institutions
sought to prevent filing Chapter 7 bankruptcy by the implementation of
many new, novel, and self serving laws designed to force almost all
employed persons into repayment plans, and further exact a penalty
through harsh living allowances intended to deter filing altogether.
Nevertheless, any person who does not have above average income (during the
last 180 days) potentially qualifies for Filing Chapter 7 Bankruptcy
even after the enactment of the new creditor generated laws.
How Filing Chapter 7 Bankruptcy Works
The purpose of filing Chapter 7 bankruptcy is to discharge debts,
including those with undisputed liability, and those with contingent,
contested and indefinite origins. Both secured and unsecured debts may
be eliminated without further payment, or optionally, any debt may be
reaffirmed, or redeemed, according to the wishes of the debtor so long
as the court and creditors agree. Filing Chapter 7 Bankruptcy Quickly
remains as the most popular choice, yet is not available for most people
who are employed or earn a regular income. If qualified, all legally
dischargeable debts listed within the debtor's schedules are eliminated
in as little as 90 days.
|
