It Is Worth Knowing Who May File Chapter 7 Bankruptcy

Release Your Debts

In fact, even a small business can apply for a Chapter Seven bankruptcy which then allows either an individual or business to obtain release from their debts and in addition get protection for their assets as well. Though the answer to the question ‘who may file Chapter 7 bankruptcy’ is anyone - either an individual or a business – but there are certain kinds of restrictions in force in regard to amount of assets that will be protected under this bankruptcy code.

Chapter Seven bankruptcy is also called liquidation bankruptcy and this chapter requires that the debtor request the bankruptcy court to cancel their debts and so helps the debtor in making a fresh start in life once more. Furthermore, all assets that are not exempted from the Chapter Seven bankruptcy code will be sold off and the proceeds from the sale will then be disbursed among the creditors.

When it concerns the question ‘who may file Chapter 7 bankruptcy’ as stated anyone or any business is allowed to make full use of this Chapter and if you choose to do so then you have to file for Chapter Seven bankruptcy in a federal court. Once filed, you get to keep certain exempted properties in your possession as well as a majority of liens.

Another way of looking at the question ‘who may file Chapter 7 bankruptcy’ is knows that this particular Chapter is best suited for people that do not state having to pay for child support or even alimony; in addition, it also suits people that have not taken a student loan and also those people that do not have any recently acquired income tax debts to pay off.

Last but not least, in regard to who may file chapter 7 bankruptcies it is also necessary that a person applying for Chapter Seven bankruptcy should have an income not less than their state’s median income.

Some people actually believe that filing bankruptcy without a lawyer is possible. To a large extent this is true though it is not always the best course of action.