Considering A Chapter 7 Bankruptcy? Information To Help You Understand How This Works

If you are deep in debt and cannot find a way out, bankruptcy may be a good option. One type of bankruptcy is known as Chapter 7. Below is information on how this type works, as well as other information you should find helpful.

Documents Required To The Chapter 7 Bankruptcy Court

With a Chapter 7 bankruptcy, you will first file a petition with the court. This type of court is known as bankruptcy court, and there will be one in the area that you currently live in. You will be required to go to credit counseling. There are many other things you will have to file with the bankruptcy court, including:

• Your current income
• List of creditors that you owe and the amount you owe them
• Statements that show your financial affairs, such as your bank statement
• A schedule of any unexpired leases you may have
• Statement showing your monthly income

Once you submit everything to the court, you will be assigned a trustee that will handle your case. The trustee will ask you for more information. For example, they will want to see your current and past bank statements, a copy of your current tax return, and past tax returns.

Once you finish your credit counseling, you will be required to submit the certificate that you receive from the counseling service.

Use Your Assets to Pay Creditors

The court will require that you use your assets to pay as much as you can to the creditors that you owe. Some properties are considered exempt so you would not have to sell these assets, and there are others you would have to sell and turn the money over to the creditors.

What is considered to be exempt and non-exempt does depend on which state you live in. In most cases, you would not have to sell the home that you currently live in, however.

Hire a Chapter 7 Bankruptcy Attorney

Going through a Chapter 7 bankruptcy can get very confusing. This is because there are so many things that you have to provide the court in order to be approved for the bankruptcy. This is one reason why you should hire a Chapter 7 bankruptcy attorney.

The attorney will ensure that you are submitting the right information to the court. This is important as if you do not submit everything the court needs, this would prolong your case. The bankruptcy attorney can also defend you in court, if needed.

Your bankruptcy attorney can give you much more information to help get you through this stressful time.