What Are the Major Steps Involved in Filing for Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy
If you don’t earn a great deal of income and you don’t own a lot of unusually expensive property, filing for Chapter 7 bankruptcy may serve as an excellent debt relief solution to your overwhelming debt. Not everyone is eligible to file for Chapter 7 bankruptcy – only low-income filers who pass the state-specific Means Test for this Chapter of the Bankruptcy Code may file for this kind of bankruptcy. If you’re unsure of whether your financial situation meets the eligibility criteria for your state, consider speaking with an experienced bankruptcy attorney, like a Chapter 7 bankruptcy lawyer in Kankakee, IL, about your income, expenses, and property. If filing for Chapter 7 bankruptcy is a viable option for you, you can expect to take the following steps before your case is finalized.
Chapter 7 Bankruptcy – Step by Step
Before you file your bankruptcy paperwork with the court, you’ll need to participate in a pre-filing credit counseling course approved by the Department of Justice for the district you’re filing in. You’ll then need to submit a significant amount of required paperwork to the court. Although it’s possible to fill this paperwork out without legal assistance, working with an attorney will help to ensure it’s completed properly and that no steps are missed. You’ll need to submit your filing fee (or a fee waiver request) with your paperwork when you file.
You’ll also need to forward certain documents, such as recent pay stubs and your most recent tax return, to the Trustee assigned to your case before your 341 meeting. At this meeting, your Trustee will place you under oath and ask you questions about your finances. You’ll also need to participate in a debt management course approved by the Department of Justice for the district you’re filing in.
These are the most basic steps of the Chapter 7 bankruptcy process. An attorney will be able to explain when exceptions or additions may apply and will be able to explain each of these steps in great detail.
Legal Assistance Is Available
If you are thinking about pursuing bankruptcy, please consider scheduling a consultation with an experienced legal team today. It is possible to file for Chapter 7 bankruptcy without a lawyer’s assistance, but working with a team will help to ensure that you benefit from the bankruptcy process as fully as possible and that your bankruptcy petition is properly prepared so that it will more likely be approved by the court. Exploring your debt-relief options, including filing for Chapter 7 bankruptcy, with the assistance of an experienced team will also help to ensure that you’re pursuing the debt relief options that make the most sense for your own situation.
Thanks to Pioletti Pioletti & Nichols for their insight into the steps taken in filing for Chapter 7 bankruptcy.