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The complete process of filing for chapter 7 bankruptcy takes about 3 to 4 months. Before going forward, the first thing you need to do is determine whether chapter 7 is the right option for you.
1) Evaluate your debt
You need to see the kind of debts you have. You need to see if your debts are dischargeable or non-dischargeable. In the case of non-dischargeable debts, chapter 7 is not the best option.
2) Probability of a property loss
When applying in Chapter 7, there is a potential to lose property too. The trustee, to pay debts, may sell off one or more of your assets. Though you can exempt some properties, the exemption rules aren’t always as straightforward as you think.
3) Qualification
Chapter 7 is suitable for those who don’t have enough income to repay the creditors. The first thing you need to do is taken the means test. If your income is at or below the amount of the state’s median income, only then do you pass the test. If you fail the test there is another test you can take. If your gross household income exceeds the state’s, you might be able to reduce the income by deducting monthly household debts. To make sure that you don’t feel in the test, look for an experienced attorney beforehand. An experienced attorney will guide you from the start. You can also contact Recovery Law Group from Los Angeles & Dallas, TX for the Same. Contact – (888-297-6203).
4) Process before Drafting
Before you file for chapter 7 bankruptcy, you need to take the credit counseling course. This evaluates whether the filer is a good fit for bankruptcy. It also helps assess whether you can handle your finances outside of bankruptcy. You have to file the completion certificate to the court for your case to move forward. Make sure that you file the case in the district where you have lived in the last 180 days before filing. Take the help of your attorney, and organize the financial documents required beforehand.
5) The Paperwork
After you are done filling out the paperwork, which is about 50 pages in length, you have to wait for your petition to be approved. Your petition will tell the court about who you are, the bankruptcy chapter you are filing for, and other information about you including your address, your business, your assets, your liabilities, and more. Make a list of all of your property before you start filing. Also, you will need proof of your income, and a monthly budget to be attached. You will also have to provide your social security number where asked. A creditor Matrix has to be created where you will be mentioning all details about your creditors.
6) The Final Step
After you finish completing the form you will have to pay a filing fee. Once it is done, an automatic stay will be placed by the court. You will have to attend the 341 meeting of creditors with the trustee. After the meeting, you will have to complete the education course and file the certificate with the court. Once all is done, you will receive the debt discharge order about 2 months after the creditor’s meeting.
Chapter 7 bankruptcy c filing is not a small process. It is lengthy, and you need to make sure you do not miss out on any information. Consult with your attorney at all times.