Chapter 7 bankruptcy

Filing for Chapter 7 bankruptcy in Seattle isn’t nearly as bad as it may sound. In fact, Chapter 7 bankruptcy has several advantages over a Chapter 13 bankruptcy. For example, you’ll get a fresh start almost immediately, you get to keep all of your future income, there is no limit on the amount of debt you can discharge, you’ll be eligible for new loans afterwards, and you even get to keep most of your assets.

Under the chapter 7 bankruptcy rules, the individual is required to dispose of assets with the aim of paying off all the identified creditors. The good news for people who file under this chapter is that the assets are usually not in a position to be lost and this makes it possible to recover from the financial situation much faster than with other bankruptcy chapters. The chapter 7 bankruptcy rules are relevant to anyone who establishes that this bankruptcy chapter is the most ideal solution. It refers to the conversion of assets into money and counts as the most commonly sought way of filing for bankruptcy.

Depending on your situation and your debts will depend on whether you file for chapter 13 bankruptcy or for chapter 7 bankruptcy. Either one can be very helpful when you are so far in debt that any other option will not help.

Whatever debt is not repaid is mostly discharged. There are certain debts that can not be discharged though. These non-dischargeable debts include federal, state, and local taxes, child support and alimony, government imposed fines and penalties, most student loans, and debts not discharged from previous bankruptcy filings. Although in some instances student loans may perhaps be discharged but provided that it is determined if paying them back may cause undue hardships on the debtor in addition to their dependants. In addition to these non-dischargeable debts there are a selection of others that pertain to certain legal and illegal activities.

When you file for bankruptcy, your case and your debts can come under the control of the court in the person of the bankruptcy trustee, whose job it is to ensure that bankruptcy laws are obeyed and that your unsecured debts are paid off as much as possible.