Which bankruptcy chapter is the least expensive?

Nowadays nearly everyone is now going for the cheapest way to procure goods and services. Perhaps this is a result of the recent global financial crisis that crop up a couple of years ago.

From communication services, cosmetics, perfume, clothing, gifts and toys, beverages, infant foods, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery, pet food, and all that it seems that people these days opt to get the least expensive ones.

On the other hand, when it comes to bankruptcy, Chapter 7 is the cleanest, easiest, quickest, and least expensive form of bankruptcy in general. In a chapter 7 case, Debtors surrender their nonexempt property, if any exists. The Chapter 7 trustee then converts the property to cash and pays the debtors' creditors. In fact, very, very few Chapter 7 cases involve the loss of property by a debtor.

Actually, chapter 7 bankruptcy is the most common form of bankruptcy that most people use. Under Chapter 7 Bankruptcy, a court appointed trustee will sell your non-exempt personal property and use the proceeds from the sale to repay your debt obligations. All creditors will have a priority rating and they will be paid in the order outlined under federal bankruptcy law. Chapter 7 Bankruptcy will take approximately four to six months to complete. Chapter 7 Bankruptcy is considered a liquidation of your assets. If you do not have any assets it will be a "no-asset" case.

Chapter 7 Bankruptcy will immediately discharge most qualifying unsecure debt including: hospital bills, unsecure personal loans and credit card bills. If you are an individual, married couple, corporation or partnership, you may qualify to file Chapter 7 bankruptcy.

Furthermore, it is important to contact your Bankruptcy attorney so as to determine if you can file Chapter 7 Bankruptcy. If you can, your attorney will file all your bankruptcy forms including your schedules, petitions, and Statement of Financial Affairs. Your Statement of Financial Affairs will list all your debts, your assets, your creditors, your property and your expenses and income.

Filing Chapter 7 Bankruptcy will also temporarily halt all collection efforts under a "temporary stay". Collections may continue if the bankruptcy judge determines there is "cause". Certain collection efforts for non-dischargeable debts will not be affected by filing Chapter 7 Bankruptcy.

When you come right down to it, Chapter 7 is the fastest and least expensive method for obtaining relief from debt.