One of the most standard types of bankruptcy filings is Chapter 7. In fact, when people speak about bankruptcy, this is typically the type of bankruptcy, whether they know it or not, that they’re talking about. However, for people who are considering filing for bankruptcy, it’s important to understand what this type of bankruptcy is and why a Chapter 7 Bankruptcy Attorney in Burlington IA is so important to have.
Chapter 7 bankruptcy is perhaps the most common type of bankruptcy for a variety of different reasons. For most individuals filing for bankruptcy, the income brackets fall within a reasonable level for Chapter 7. While it’s not uncommon for higher earners to file for bankruptcy, it is more common for people in the mid range to below median incomes to do this. In fact, Chapter 7 bankruptcy was created specifically for people who are either at or below poverty levels.
Another thing to understand, and something that a Chapter 7 Bankruptcy Attorney in Burlington IA will likely explain, is that Chapter 7 is the best and perhaps one of the only ways an individual can have their debt wiped out by the courts. Some people fear that they will have to sell their home or their cars to repay a portion of their debt during bankruptcy.
While some property or assets may have to be sold, the good thing is that there are plenty of exemptions for things such as a person’s house or their vehicles, which prevent those items from being sold in order to repay creditors. If a person were to receive an inheritance, or perhaps a person has a secondary property, these are instances where that property or those assets would have to be sold to repay some of a person’s debt. A primary home or a source of transportation will not be on the list of assets to be sold.
Speaking with an attorney will help you to understand what Chapter 7 bankruptcy is and dispel some of the myths and the rumors surrounding it. Typically, after a consultation with a bankruptcy lawyer from Cray Law Firm PLC, an individual or a couple will have a good idea as to how Chapter 7 bankruptcy works and if this type of filing is going to be right for them.
