Consumers who are facing an incredible amount of debt could receive a free start by filing for chapter 7 bankruptcy. This is the quickest form of bankruptcy as it only takes three to six months to complete. After its conclusion, the consumer can return to their normal life without a mountain of debts. The first step is to pass the means test. The consumer must possess an income that is less than $47,782.
Is Liquidation Right for You?
The liquidation process requires that you possess ample property and assets to generate a significant amount of proceeds. These proceeds should cover the balance of all debts listed in the bankruptcy. A lack of adequate assets and properties could prevent the approval of the bankruptcy claim. You should review these items with a Bankruptcy Lawyer St. Charles MO to determine whether their valuations imply that they would settle your debts.
In a chapter 7 bankruptcy claim for a business owner, he or she may be required to set some properties connected to the business. In most instances, the court will require them to cease all operations of the business as well. If the earnings of this business is the owners only income, this may present a hindrance that could lead to larger complications if he or she files for bankruptcy. Visit website for more information.
When the primary asset owned by the claimant is their home, it is plausible to believe that a liquidation claim could require them to sell this property. If the court does not exempt it within the bankruptcy claim, it is sold along with other assets. A trustee manages these sales and collects the proceeds. He or she is responsible for distributing the funds to each creditor listed within the bankruptcy.
At the end of the process, any exempted values assigned by the court are remitted to the consumer. This includes all exemption value associated with the assets and properties that were liquidated. Unlike chapter 13, the claimant is not required to utilize disposable income towards debts; for this reason, they are allowed to keep all proceeds generated through exemptions. Consumers who require a Bankruptcy Lawyer St. Charles MO should contact the Law Offices of Steven K. Brown.
