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Saturday, February 7, 2009
When debts are overwhelming, bankruptcy filing may be the only option for you. Many people prefer Chapter 7 Bankruptcy. Chapter 7 is a 'liquidation' of all the non-exempt assets which should be an avenue to pay all your debts. This chapter is supervised by the authority and the court will appoint a trustee to get sales from all the non-exempt assets owned by the debtor and distributes between the creditors. Bankruptcy chapter 7 exemptions are assets that the courts will not touch when filing for bankruptcy. Although chapter 7 is the least favorite method of bankruptcy, with the law of exemptions, a debtor can have a chance to reduce their personal liability and keep some personal belongings.
In this exemption the debtor selects property that he/she is eligible to keep from a list containing state exemptions or exemptions provided in the Federal Bankruptcy Code. All the property of the debtor will be divided as exempt or non-exempt once the trustee files a property exemption report. State exemption laws can vary from one state to another although some basic laws may be the same.
In paying off the debts, the secured debts are first to be in line. As for unsecured debts, it can be possible that the creditors of unsecured debts receive partial or no payment. The trustee is authorized to decide who gets the payment first, based on the law. In order to get bankruptcy chapter 7 exemptions, the debtor must file the case in the state where he/she resides for a period of 730 days before filing for this type of bankruptcy. Or the debtor may also file the case in a state where he/she has previously lived for more than 180 days, up to 2 years.
Federal exemptions may also be provided including retirement benefits, death disability benefits, survivor's benefits and miscellaneous. You should find out more about the Federal exemptions because not all the states are the same.
Bankruptcy is probably the worst scenario, your credit score will drop a lot because of it. You will lose all your personal belongings and you need start a new leaf, both personal and business wise. Always consider other options before you look at bankruptcy.
However, if in a worse case scenario, then remember to educate yourself about bankruptcy chapter 7 exemptions as you can reduce your personal loss and maximize the benefits of this law to pay off your debts fast.
In this exemption the debtor selects property that he/she is eligible to keep from a list containing state exemptions or exemptions provided in the Federal Bankruptcy Code. All the property of the debtor will be divided as exempt or non-exempt once the trustee files a property exemption report. State exemption laws can vary from one state to another although some basic laws may be the same.
In paying off the debts, the secured debts are first to be in line. As for unsecured debts, it can be possible that the creditors of unsecured debts receive partial or no payment. The trustee is authorized to decide who gets the payment first, based on the law. In order to get bankruptcy chapter 7 exemptions, the debtor must file the case in the state where he/she resides for a period of 730 days before filing for this type of bankruptcy. Or the debtor may also file the case in a state where he/she has previously lived for more than 180 days, up to 2 years.
Federal exemptions may also be provided including retirement benefits, death disability benefits, survivor's benefits and miscellaneous. You should find out more about the Federal exemptions because not all the states are the same.
Bankruptcy is probably the worst scenario, your credit score will drop a lot because of it. You will lose all your personal belongings and you need start a new leaf, both personal and business wise. Always consider other options before you look at bankruptcy.
However, if in a worse case scenario, then remember to educate yourself about bankruptcy chapter 7 exemptions as you can reduce your personal loss and maximize the benefits of this law to pay off your debts fast.
About the Author:
Want to declare bankruptcy? Thinking of declaring under Chapter 7? If so, be sure to understand more about bankruptcy chapter 7 exemptions. You can retain some assets for yourself! Find out more now!
posted by Credit Counseling at
3:17 AM
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