A law that provides for the development of a plan that allows a debtor, who is unable to pay his creditors, to resolve his debts through the division of his assets among his creditors is called Bankruptcy. Certain bankruptcy proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts.

The new bankruptcy law is now in effect, the landscape has changed for those who are considering bankruptcy. All debtors will have to get credit counseling before they can file a bankruptcy case and additional counseling on budgeting and debt management before their debts can be wiped out.

What is Chapter 7 of the Bankruptcy Law?

The most frequently used bankruptcy law is the Chapter 7, often called the Liquidation Bankruptcy. It involves the complete liquidation of a debtor's property, with the proceeds used to pay off the debts. Someone who considers bankruptcy is unaware of the nuances of bankruptcy or certain creditors' rights in bankruptcy. Be familiar with all the applications for filing.

6 Basic Procedures Involved in Filing for a Chapter 7 Bankruptcy

1. The clerk of court will give notice of the bankruptcy to your creditors.

2. Meeting of creditors will be held to question you about your debts and ability to pay. Other creditors and the trustee may question you.

3. A creditor of the trustee assigned to your case may object to your listed exemptions within 30 days after the meeting of creditors.

4. After the first date is set for the meeting of creditors, a creditor must file a proof of claim within 90 days.

5. A creditor may object to the discharge ability of a particular debt at any time if the debt if it is not listed in the schedules so that a creditor could file a proof of claim.

6. The best thing to do is to consult bankruptcy experts such as bankruptcy attorneys and lawyers to guide you properly. Filing for bankruptcy involves a lot of procedures. Be sure to do the proper procedures to make your bankruptcy filing go smoothly.

4 Tips in Looking for an Effective Bankruptcy Lawyer

1. A bankruptcy lawyer should be specialized, well-trained and experienced in bankruptcy or does a large part of his or her practice in the field. Look for a certified specialist or a lawyer with significant experience in bankruptcy.

2. A bankruptcy lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. They may also give you advices on where it is better to file a bankruptcy.

3. Your lawyer can also stop your creditors from harassing you, immediately once you retain a lawyer to file your bankruptcy, they will start taking your creditor