Chapter 7 Bankruptcy and Why Some Use a Bankruptcy Attorney
The US bankruptcy code offers several choices to one who is having trouble of financial debt. Read chapter 7 bankruptcy is probably the most common and preferred by most debtors. There are many reasons why this form of bankruptcy is the most popular but here are a few. First of all, time, a Chapter 7 bankruptcy typically takes about 100 days from beginning to end. Once the case is filed, but 341 creditors meeting is held about a month later. Unless there’s any objections from the creditors, the case ends with the discharge usually 2 to 3 months later. Next, another popular reason is Chapter 7 bankruptcy filers rarely lose any property. Federal and state exemption laws allow debtors to keep most of their property. Bankruptcy trustees generally conclude that these are no asset cases. This means that you keep all your stuff. Another huge reason for the popularity of Chapter 7 is it’s considerably less expensive than a Chapter 13 bankruptcy. While there are huge differences on what bankruptcy attorney charges, attorney fees and a Chapter 13 can cost as much as five or $6000. While a Chapter 7 bankruptcy usually runs between $2000-$3000 to hire a full-service attorney. When cash is tight, the last thing you want to do is spend more money on an attorney. Probably the number one reason that people file this type of Bankruptcy is there is no repayment to unsecured creditors. If your debt is incurred in good faith and no creditor objects to you filing bankruptcy, all unsecured credit obligations will be completely wiped out in the bankruptcy.
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