Chapter 7 Bankruptcy Forms Are Free And Available Online
Personal bankruptcy filings are increasing on a daily basis as the financial crisis overtakes the economy. Millions are threatened with home foreclosure, repeated calls from a collection agency and mounting credit card debt as families must make the critical choice between purchasing food and meeting their financial obligations.
While many may try to avoid filing bankruptcy, this is almost inevitable. Bankruptcy laws are designed to reorganize debt and provide an amicable agreement for repayment. When repayment is not possible, a total liquidation of the debt through a Chapter 7 bankruptcy occurs. The bankruptcy courts will determine this after conduction a means testing of the debtor's financial position. A trustee is assigned to the case and sells all related properties in order to pay back creditors. This process requires Chapter 7 bankruptcy forms related to the case.
A Chapter 7 bankruptcy is broken down into five sub chapters which provide a full description of the bankruptcy proceedings and the responsibilities of all parties. Subchapter 1 provides a definition of the election procedures as well as the duties of the assigned trustee and creditors committee. This committee consists of representatives from all creditors which were listed on the Chapter 7 bankruptcy forms. Subchapter 2 provides a description of the provisions for collection, liquidation and distribution of the debtor's estate. Subchapters 3, 4 and 5 describe any relevant provisions for Stockholder, Commodity broker and Clearing bank liquidation, respectively.
The ultimate goal of a Chapter 7 is to stop foreclosure proceedings, creditor harassment and to remove certain liens. Anyone who is a citizen and/or has a business or property in the United States qualifies to complete Chapter 7 bankruptcy forms. These forms are free and available online to download. However, there are several conditions which will disqualify an individual from filing Chapter 7:
Chapter 7 involves a liquidation of all debt with the exception of a few that are not dischargeable. These include child support; taxes; student loans; criminal fines; liability for injury or death as a result of a DUI; criminal fines; and, debts that were not discharged under a previous bankruptcy. None of these debts can be listed on Chapter 7 bankruptcy forms. These forms are available to the public. |
