Eliminate all your debts and clear things up with your creditors through Chapter 7 bankruptcy law. Besides, when you file for bankruptcy and the court approves your petition, you can get rid right away nagging and abusive debt collectors.
When you want to undergo a due process, expect that your financial troubles will not magically disappear in just a blink of an eye. Yes, it may take time to receive a final discharge, but it’s worth the wait.
What is Chapter seven bankruptcy?
Since the bankruptcy trustee liquidates and sells your assets, then use the money left to pay your debts, Chapter 7 is also called as the “liquidation” or “straight bankruptcy.”
Can you keep some properties? Yes, your exempt properties are out of the bankruptcy estate’s authority.
If you want a fresh start and repair your credit, declare Chapter 7 bankruptcy to achieve such goals.
When planning to file for bankruptcy 7, you must comply to the following requirements:
1. An individual debtor, corporation, partnership, and other business entity.
2. Has passed the “means test” which evaluates your ability to pay at least an important portion of your debts. The test is a calculation of your income and expenses. If you have very low income to qualify for Chapter 7 bankruptcy, and not eligible to file for Chapter 13.
3. Must complete a credit counseling session either by phone, personal or online from a government-approved credit counseling agency within 180 days before a bankruptcy discharge.
4. If you have a previous bankruptcy case, it should be within the past eight years for Chapter 7 and six years for Chapter 13.
5. If you had a recent bankruptcy dismissal, make sure it was within the last 180 days before filing for another bankruptcy petition.
Before you go to court to officially file your bankruptcy petition, make sure you have the following ready:
1. Gather all financial records including bank statements, credit card statements, loan documents, list of your properties, debts, creditors, current income and expenditures, expenses and property transfers. You need them to fill out your bankruptcy petition and court schedules.
2. The court would require you as well to file documents such as a voluntary petition for relief, schedules of assets and liabilities, declarations regarding debtor education, and statement of financial affairs.
3. After you provide all the paperwork, you have to pay for the filing fee to finally file your bankruptcy case.
After filing bankruptcy…
Once the court approves your petition, they will give you a notice on the schedule of meeting with the creditors.
You must attend the meeting, but your creditors may or may not come.
During the meeting with the creditors, the trustee will ask significant questions about your case. Answer honestly to avoid misleading the court.
When can you get a discharge in Chapter 7 bankruptcy?
You can finally wipe out all your debts and start afresh if there are no more objections from your creditors and bankruptcy trustee. Thereafter, the court will release a discharge.
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