The Chapter 7 Bankruptcy
If bankruptcy filing is considered to be an opportunity for a defaulter to put an end to all his debts and anew; perhaps opting for chapter 7 bankruptcy is an avenue to attain the goal quicker. Filing under chapter 7 bankruptcy means that the court will auction out all non-exempt property of the debtor and distribute the sales proceeds among the creditors. Most of the time, when the defaulter goes for chapter 7 bankruptcy, he/she is left no property to lose and so the whole procedure finish quicker.
While there are several laws of bankruptcy that a [debtor would want to file for, but it can be quite a job to decide on the correct law that suits your needs. To help you out, the article is to focus on Chapter 7 Bankruptcy.
Here are some steps to consider when filing for chapter 7 bankruptcy in the right manner:
- Consider filing for bankruptcy to be the final avenue and apply for it only if you see that you have no ways left.
- Consult a bankruptcy lawyer. An attorney/lawyer is a professional and has enough experience and proficiency to guide your way in the entire procedure.
- Credit counseling is a must-go.
- File petition. Filing petition will stop the creditors from going for any court proceedings against you.
- Make sure that you finish all the required forms promptly
- Make sure that you pay all your fees on time.
- After filing for a petition, a meeting will be held in about a 30 days time. In this meeting all your creditors will be present and they will ask you question regarding your property and financial status which you need to reply. This meeting is important and you cannot have a subsitute.
- In the new bankruptcy laws, defaulter] filing for chapter 7 bankruptcy needs to undergo a debtor financial management educational course organized by credit counseling agencies.
In summary, if you have followed the abovementioned steps you should be safe to go ahead clear your debts.
So, now you understand how to file chapter 7 bankruptcy, best of luck!
Tags: Chapter 7 Bankruptcy