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Specific requirements for Chapter 7 bankruptcy

Realizing that you're in over head with debts is a traumatic experience for some people. One option that you have in this case is filing for bankruptcy. There are two primary persona bankruptcies that people file – Chapter 13 and Chapter 7. A Chapter 13 is reserved for people who have an income and can keep up with payments to the bankruptcy trustee. A Chapter 7 is for people who don't have the income required to do that.

If you don't have an income that can support payments to the bankruptcy trustee, you will have to pass a means test to determine whether you're eligible to file for the Chapter 7 bankruptcy. You won't have to make payments to the trustee but your non-exempt assets will be liquidated to pay your creditors.

Before you file for Chapter 7 bankruptcy, you have to complete a bankruptcy counseling session. This must be done within the 180 days prior to you filing your case. You can file as soon as it's done, so make sure that you have the filing fees.

After the case is filed and all the fees are paid, you'll have to appear at the Meeting of Creditors. You'll find out who the bankruptcy trustee is at this meeting. You'll discuss your finances with any creditors who show up for the meeting and the trustee.

During the course of the bankruptcy, you'll have to go through a financial management course. You have 60 days from the Meeting of Creditors to turn in the certification that you completed the course.

Once you've gone through all the steps, the bankruptcy is discharged and eligible debts are removed from your responsibility. You'll still have to pay the ones that aren't included in the case. This gives you a fresh start for your finances so you can live without having to drown in those debts.

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