New Chapter 7 Bankruptcy Filing Requirements
The benefits of filing Chapter 7 bankruptcy appeal to almost all
people who file. Chapter 7 discharges debts completely, and quickly,
while allowing debtors to retain exempt property. Individuals may file
even though unemployed. This discharge of debts is available in as
little as 4 months with a rather simple administration in consumer
cases. Also, attorney fees are low compared to Chapter 13, and debtors
typically are not required to attend the discharge hearing, unless an
objection is filed by a party in interest.
For over 90% of debtors who qualify, Chapter 7 is simple, cost
effective, and eliminates debts almost entirely without further payment.
In Chapter 7 bankruptcy, inheritance may be retained if received more
than 6 months after discharge.
Retaining Chapter 7 bankruptcy assets is easy, so long as a specific
exemption statute applies. However, many debtors also want to retain
nonexempt assets too. This concern seems to be expressed by the most
frequently asked questions: "How do I keep my house in Chapter 7 if
payments are past due?" Fortunately, debtors have options.
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