Filing Chapter 7 Bankruptcy lawyer is for individuals overwhelmed with debt. They provide you with a fresh financial start when you hire them. With the sale of non-exempt assets, this legal process enables debtors to pay off most unsecured debts, including credit card debt and medical bills. While it is technically possible to do it yourself, most find that employing the services of a Chapter 7 Bankruptcy Attorney will guarantee the process gets done properly and effectively. This is a step-by-step how-to on filing Chapter 7 bankruptcy with the aid of an attorney.
Meeting With a Bankruptcy Lawyer
The procedure begins by meeting with a free or low-fee consultation with a bankruptcy attorney. During this appointment, the attorney will go over the client’s financial history such as income, debt, assets, and recent background. From this analysis, it will decide whether Chapter 7 is the most appropriate form of bankruptcy, or whether Chapter 13 or some other alternative would be more preferable. The lawyer can also explain possible outcomes, timelines, expenditures, and any complications that could occur in the course of the case, including recent sales of property or expensive purchases.
Gathering Documentation Relating to Finance
Gathering good financial documents is the second process following the individual’s decision to continue. This usually involves:
- Pay stubs and income statements
- Tax returns
- Bank statements
- Credit card and loan statements
- Assets and property list
- Living monthly expenses
According to this information, the bankruptcy lawyer fills out the required forms and makes a determination of whether the client is eligible under the Chapter 7 means test, a procedure meant to restrict Chapter 7 to individuals who are truly incapable of paying their debts.
Satisfying the Credit Counseling Requirement
Once all the information needed is on hand, the attorney will prepare and will submit the official bankruptcy petition to the bankruptcy court. They are the papers that start the case and involve a complete financial disclosure. All collection activities, including lawsuits, wage garnishments, and harassing telephone calls from creditors, are then halted when an “automatic stay” takes effect.
Appointment of the Bankruptcy Trustee
Once they have petitioned to the court of bankruptcy, they will install a bankruptcy trustee to handle the case. They are also charged with reading the petition, examining how accurate the financial disclosures are and handling the liquidation on non-exempt assets, if any. In addition, the trustee can also identify some warning signs or points that require additional clarification.
Meeting of Creditors
Days after the filing, the debtor has to show up at the meeting of creditors. It is a short mandatory meeting where the trustee and concerned creditors can ask questions on the financial documents filed. Additionally, the attorney also goes to the meeting to accompany the client and have a smooth process. The meeting is quite short, especially if everything is in order with the documents.
Completing the Course in Debtor Education
The debtor education or post-filing course is a second money management course that the debtor has to finish after attending the meeting. This course, which deals with financial planning, proper use of credit, and budgeting, is a requirement for discharge of debt.
Getting the Discharge
The court will issue a discharge order between 60 to 90 days from the meeting once all the requirements are in place and no objections arise. This discharges qualifying debts like medical payments, personal loans, and credit card purchases judiciary. Once the case is resolved, the person can start to restore their financial life.
In essence, getting a Chapter 7 Bankruptcy Attorney can be a hassle-filled process, but an experienced one can minimize the hassle and get everything done without a hitch. The attorney helps clients take back control over their financial future by being the guide and advocate from the first consultation until the final discharge. A fresh beginning is not only possible, but also attainable with the right legal counsel.
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