The dismissal bankruptcy is just another way of saying Chapter 7 liquidation.
What is Chapter 7 liquidation? Well, in a nutshell you sell assets that you have in order to pay for your debts, and what you cannot pay off is wiped out by the bankruptcy court.
In approximately 95% of cases, citizens who declare bankruptcy do not have significant nonexempt assets.
If this is the case for you, then you would simply have your debts wiped out with Chapter 7, assuming that your case is successful before the bankruptcy court.
So how do you know if you qualify for Chapter 7 liquidation ? Has it become much more difficult with the recent changes in the bankruptcy statutes? Well, the process is more challenging and requires additional help from a bankruptcy lawyer in order to sort through all the new rules and regulations.
Thankfully, however, Chapter 7 bankruptcy is still available to many people who really need it.
For example, if your income for the previous six months is lower than the median income for your state, then you do not have to worry about accomplishing the means test.
If your salary was higher, then you have to go through the means test in order to document your income and expenses and prove your need for bankruptcy.
Even then, though, you may still qualify for Chapter 7.
What happens if you don't qualify for Chapter 7? Well, you may be able to file Chapter 13 which at least gives you some breathing room by creating a payment plan for the next three to five years.
Chapter 13, by the way, is what many people choose when they are behind on their mortgage payments and do not wish to lose their house.
You see, when you declare chapter 7 bankruptcy this eliminates unsecured debts like credit card bills and keeps creditors from going after your house (depending on your state's homestead exemption laws).
However, you can still lose your house if you don't pay the mortgage company or bank! This is where Chapter 13 can be helpful if you need to catch up on your payments.
What is Chapter 7 liquidation? Well, in a nutshell you sell assets that you have in order to pay for your debts, and what you cannot pay off is wiped out by the bankruptcy court.
In approximately 95% of cases, citizens who declare bankruptcy do not have significant nonexempt assets.
If this is the case for you, then you would simply have your debts wiped out with Chapter 7, assuming that your case is successful before the bankruptcy court.
So how do you know if you qualify for Chapter 7 liquidation ? Has it become much more difficult with the recent changes in the bankruptcy statutes? Well, the process is more challenging and requires additional help from a bankruptcy lawyer in order to sort through all the new rules and regulations.
Thankfully, however, Chapter 7 bankruptcy is still available to many people who really need it.
For example, if your income for the previous six months is lower than the median income for your state, then you do not have to worry about accomplishing the means test.
If your salary was higher, then you have to go through the means test in order to document your income and expenses and prove your need for bankruptcy.
Even then, though, you may still qualify for Chapter 7.
What happens if you don't qualify for Chapter 7? Well, you may be able to file Chapter 13 which at least gives you some breathing room by creating a payment plan for the next three to five years.
Chapter 13, by the way, is what many people choose when they are behind on their mortgage payments and do not wish to lose their house.
You see, when you declare chapter 7 bankruptcy this eliminates unsecured debts like credit card bills and keeps creditors from going after your house (depending on your state's homestead exemption laws).
However, you can still lose your house if you don't pay the mortgage company or bank! This is where Chapter 13 can be helpful if you need to catch up on your payments.
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