School is about to start up in the Mankato, MN area, which means that students everywhere are looking ahead to homework and assignments. By the end of the month, they’ll be memorizing biology flashcards, solving algebra equations, and working through textbook chapters.
However, students aren’t the only ones working through chapters. At Behm Law Group, Ltd., our bankruptcy professionals are always ready to handle Chapter 7, a specific type of bankruptcy with a unique set of rules and restrictions.
If Chapter 7 is something you’d like to learn more about, take a peek at our notes. Behm Law Group, Ltd. has compiled a study guide of seven facts to know about Chapter 7 bankruptcy:
1. Q: How long does it take to file for Chapter 7 bankruptcy?
A: Typically, it takes about 3-4 months to file and obtain relief from debt.
2. Q: How long does a filing remain on my credit report?
A: A bankruptcy filing can remain for about five to seven years.
3. Q: What might I lose when filing for Chapter 7 bankruptcy?
A: It depends on each individual case but most possessions will be exempt and the exemption laws allowing you to keep property are quite generous.
4. Q: Will Chapter 7 take care of alimony or student loan debt?
A: If a debt is truly alimony, probably not but sometimes alimony is not really alimony and the right to receive it has been assigned to some other entity. In such a case, sometimes relief can be accorded. With respect to student loans, a person must go beyond the filing of a bankruptcy petition by filing an adversary proceeding against the student loan lender. Sometimes, student loans can be discharged if one can establish “undue hardship” but the process is very expensive and protracted.
5. Q: Am I able to file for bankruptcy a second time?
A: Yes! However, there are certain time restrictions involved.
6. Q: What kinds of time restrictions?
A: In most scenarios, you must wait at least six years between Chapter 7 bankruptcy filings.
7. Q: Do I still need to repay certain debts despite a Chapter 7 filing?
A: Sometimes. Certain types of debts, like some tax debts, child support or alimony obligations, aren’t generally discharged in a Chapter 7 proceeding.
Feel prepared for an exam on Chapter 7 bankruptcy? If you live in the Mankato, MN area, put down your number two pencils, throw away those test booklets, and give Behm Law Group, Ltd. a call today.