We all have heard of chapter 7 bankruptcy, although many of us could not give a precise answer to what exactly it means. Every day people make mistakes when filing for bankruptcy that probably could have been avoided if they had better understood the different types of bankruptcy.

Certainly no one wants to involve in bankruptcy proceedings. Anyone who does will have to have debts that greatly exceed his or her net worth and, in addition, have no visible or viable means of paying back the debts, so without a doubt they will definitely want to learn some How to File Bankruptcy Facts to make the whole ordeal easier and less problematic.

There are a number of different forms of bankruptcy such as chapter 11 bankruptcy and the more common chapter 7 bankruptcy. Since chapter 7 is more common for individuals, it is the one we will focus on here.



Defining Chapter 7 Bankruptcy:

Chapter 7 bankruptcy as defined by US and its courts law refers to the action or liquidating not legally exempt from liquidation assets with the desired outcome of paying back creditors and debtors alike.

Businesses/partnerships/corporations and individuals can apply for a chapter 7 bankruptcy. There is, however, a special clause open to the individual within the framework of this chapter filing that is not available to the other entities.

That special clause is known as a "discharge". What it basically means is that the public are able to free themselves totally from some of their debts.

How to File Bankruptcy when trying to get chapter 7:

When one needs to file for chapter seven bankruptcy some of the things you will need are the following: tax returns, contracts of an executive nature, statements of financial affairs, all proof of liabilities and assets as well as documents to prove one's current income and necessary expenses.

For the public there are a series of additional items that are necessary. These items include: copies of credit counseling reports and repayment plan programs, employer payments and statements of income, interest payments on student loans, etc. However, remember filing for Chapter 7 protection by yourself is not advised, you should get professional help from an expert bankruptcy lawyer.