Chapter 7 Bankruptcy is a powerful tool to help people get a fresh start on their finances. It can be used to resolve credit card debt, medical bills, pay day loans and old repossessions.
Chapter 7 Bankruptcy has several steps. Step 1 is qualifying for relief. There is a Means Test that helps the Court determine if you qualify. Your attorney will need your last six months of income records. The means test is about 60 lines long and compares a debtor's income to the income of similar size families in the same county. Your attorney can also find deductions in your monthly expenses so even if you are earning a little more than others you can still qualify.
Step 2 is to complete a Credit Counseling Course. The Course is done online and usually takes an hour. It will help you review your situation and propose any alternative to filing for Chapter 7 bankruptcy.
Step 3 is to sign and file your bankruptcy petition. Your bankruptcy petition will list all of your assets, debts, and income. It will also include a Statement of Financial affairs which will provide the Court additional information about your current financial situation.
Step 4 will be the Creditors meeting or 341 hearing. You will appear with your attorney. Your attorney will ask you a few questions "on the record". Any of your creditors have a right to appear and question you as well, but this rarely happens.
Step 5 will be to complete your second online course. This course is commonly referred to as the Financial Management Course. This course will help you make a budget so you can avoid filing for bankruptcy again. It will also show you how to responsibly rebuild your credit.
Finally, about 60 days after your hearing, if you have completed all your courses and no creditors file an objection, you will receive a Discharge and get the fresh start you are looking for.
From the day you file to the day you get your discharge will be about 110 days. Your attorney will be available during that time to answer any questions you have and to interact with your creditors if need be.
If you are interested, give me a call or schedule your free consultation on the "Book Now" link above.