Denver Personal Chapter 7 Bankruptcy
There are several types of bankruptcies designed to cover the specific needs of a wide variety of debtors. One of the most common forms of bankruptcy is Chapter 7, also known as liquidation, and it allows debtors to absolve their debts through the sale of nonexempt property and the dispersal of the proceeds to creditors. Liquidation is one of the types of bankruptcy that Americans are most familiar with, but most people have misconceptions about liquidation and most individuals who qualify are unaware of the benefits it can offer.
Chapter 7 Information
Chapter 7 bankruptcies allow individuals and business to erase debts that they may otherwise have no ability to pay while helping creditors collect on debts owed. The misconception which is most common about Chapter 7 bankruptcy is that individuals and businesses will lose all properties and assets. Although a Chapter 7 bankruptcy filing may force a company out of business this is not always the case and individuals are offered a set dollar amount of exempted property. Chapter 7 bankruptcies make allowances for exempt property so it is possible for people to use a liquidation to resolve their debts without giving up their cars and home. The main advantage of Chapter 7 bankruptcies over all others is that they are usually quickly discharged, often within 60 to 90 days after the meeting of creditors, and allow those who file to get a fresh financial start in months rather than years.
Filing Chapter 7 Bankruptcy
Filing a Chapter 7 bankruptcy rather than other forms of bankruptcy makes sense in many cases, however, understanding which situations are best suited for liquidation as opposed to other options is often something only an experienced bankruptcy attorney can do. There are subtle differences between the 6 types of bankruptcies and consulting an experienced attorney is often the only way to make sure the best bankruptcy decision is made.
If you live in the Denver Colorado area and are considering bankruptcy, contact us at the Norton Law Offices for help in determining your best financial option.