Net Gamblings

There are two options for filing bankruptcy as a single person or married couple, chapter 7 and chapter 13 bankruptcy. Chapter 7 is often called liquidation as all of your property that is not exempt is sold in order to pay off your debts that you claim in the bankruptcy. Exempt property is that property that the bankruptcy court allows you to keep in order to continue living a normal life, like a automobile, clothes, furniture to sit on, etc. States are allowed to set different bankruptcy exemptions, as well as a set of Federal exemptions that can be used in some states.

In order to qualify to file a chapter 7 bankruptcy petition, cannot be a business or farm, must be an individual, you must complete a credit counseling course from an commissioned agency inside the 180 days before filing for chapter 7 bankruptcy relief, and pass the means test which is completed with your bankruptcy petition.

In a ch 7 bankruptcy petition, you will have to file statements that list your debts, assets, income and expenses. The bankruptcy court may also request to see tax returns, pay stubs and credit counseling certificate. Bankruptcy filers who are married must provide the spouses data even if they are not going to file bankruptcy together so the bankruptcy court can determine your ability to pay the debts.

When finishing your petition, you will have the option to keep paying and saving your property if you are able to, such as your home or car, by making a reaffirmation agreement with the creditor. By reaffirming the debt you are acknowledging that you intend to make payments. If the trustee approves your reaffirmation agreement, the creditor may be able to repossess the property if you do not pay.

When you file your chapter 7 bankruptcy petition you will have to give a filing fee of $299. This fee can be paid in installments, up to 4 no later than 120 days after you file. Once filed, the bankruptcy stay is in effect, creditors cannot call, collect or file lawsuits. Each of your debts will be advised that you have filed bankruptcy and yielded a chance to reply. A meeting of the creditors, a 341 meeting, will be called within 20-40 days of filing the petition. During this meeting, the trustee and your creditors may ask questions about your petition.In the next 10 days the trustee rules on whether your case is abusive. A presumption of abuse by the trustee can result in being forced into a chapter 13 bankruptcy.

The bankruptcy trustee is then responsible for liquidating your assets that are not exempt, meaning they are not protected by filing bankruptcy, and giving the proceeds from the sales to your unsecured creditors. After liquidation a discharge is granted to you, which wipes out the rest of your debts.