If you are considering bankruptcy, just know that there is nothing wrong with this. Sometimes having to file for bankruptcy is the only way to truly get a fresh start. So if you have done some research and decided that filing for the chapter 7 bankruptcy is the best option for you, the next step is learning more about the process.
What is a Chapter 7 Bankruptcy?
A chapter 7 bankruptcy will be filed if the filer has no intention of filling out the form for the repayment plan and wants to get a fresh start. A repayment plan is when the debtor with a regular income agrees to pay back the creditors using a three to five year plan. This plan is not required when filing for a chapter 7 bankruptcy.
What a chapter 7 bankruptcy involves is the trustee who is handling the bankruptcy gathering and selling all of the debtor’s non-exempt assets and using this to pay back the creditors. Any individual, business, or corporation can file for a chapter 7 bankruptcy if they have not missed court dates in 180 days prior to filing or if they have not received credit counseling within the last 180 days before filing.
The Process of Filing for Chapter 7 Bankruptcy
When going to file for a chapter 7 bankruptcy, there is a multitude of paperwork that needs to be filled out. Some of these forms include a statement of financial affairs, a list of assets and liabilities, and a list of current incomes and expenditures. Next is the payment of approximately $335, which is paid when the paperwork is filed. If it is granted, this payment can be broken down into up to four installment payments. These installment payments have to be paid within 120 days after filing the paperwork. After the paperwork is filed, the creditors will stop calling and trying to collect. The next step is to meet with a trustee who will be asking many questions about your non-exempt assets. The trustees will then be the ones who take over all of the assets in order to use them to pay back the creditors.
Need Help Filing?
So that was a lot of information just presented to you about chapter 7 bankruptcy. Believe it or not, but that is just a light summary. With that being said, it is normal to be feeling a little overwhelmed at the moment. This is where help comes in. If you need help filing for chapter 7 bankruptcy, bankruptcy lawyers are equipped with all the tools you need in order to successfully file. Most offer free consultations, so you will be able to speak with lawyers about your situation and they will help you with the whole process.
There is always help when you need it when filing for a chapter 7 bankruptcy. If this is the only way for you to get a fresh start then having a knowledgeable company help you with this information is the best way to go. You deserve a fresh start and a chapter 7 bankruptcy is the best way to get it.