There is a lot to think about if you feel you need to file for Chapter 7 bankruptcy. Once you have decided to file for it, the process is pretty streamlined. Here are the stepsa bankruptcy attorney will tell you to use to file for Chapter 7 bankruptcy.
Chapter 7 bankruptcy is a means for people who do not have a lot of income or property to get relief from any high debt they have. You will need to pay a filing fee, which you may ask to do in an installment plan. If you file for this kind of bankruptcy, it will stop creditors from harassing you.
Your first step in filing for Chapter 7 is obtaining a list of all of your debts. This includes any medical bills, charge card balances, leases on apartments or vehicles, personal loans, auto loans, utility bills, and any other debts you owe businesses or people.
Next, you will want to look at what your exemptions are. The following items are things that a bankruptcy attorney will tell you that you can generally keep: bath towels, linens, appliances, dishes, medical devices if they are prescribed, tools if they are needed for a business, clothing, and furniture.
The third step involves seeing if you qualify for Chapter 7. Yes, there are income limits. Therefore, a means test is used. To see if you qualify, find out what your gross income was the six months before you filed, then multiply it by 2. Then check out what the average gross income in your state is for how many individuals reside in your home. If you are under that amount, you will qualify.
When filing for bankruptcy, you must do credit counseling as well. You may take the course up to 180 days before filing. This course can be done over the phone or online.
With the fifth step, you will need to fill out all the forms needed to file for bankruptcy. On these forms, you will need to list what your debts are, your income, any property you own, what your expenses are, and anything else about your present or past financial circumstances.
Documents will then need to be submitted to a trustee. They will need copies of your tax returns, paycheck stubs, bank statements, and more.
At this point, you will have a 341 meeting of creditors. This will be a series of questions about your financial affairs. Creditors are allowed to attend the meeting if they desire. However, it is very rare that they will.
The eighth step is to fight a lender’s claim against your situation or want to stop liens in Chapter 7 if you need to. You will need totake care ofthese matters prior to your insolvency case being closed. In many cases, motions aren’t necessary. Should you neglect to address a lien, the court will potentially let you open your insolvency case back up in the future.
The final step is to take a course on debt education. This must be filed on time, or the court can dismiss your case. While you can remedy this situation, it can be extremely costly.
If you are in the Clearwater area and are in need of a Chapter 7 bankruptcy attorney, call Weller Legal Group. They can answer all your questions so you can have a fresh beginning.