Did you recently lose your job, and your income is barely enough to meet your debts? Before hiring a Chapter 7 bankruptcy lawyer to help, it is important to understand the law as much as possible.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy law, commonly referred to as liquidation bankruptcy, helps debtors unable to meet their debt obligations. It works by discharging unsecured debts like personal loans.
Filing for Chapter 7 is easy and effective, especially with the help of a bankruptcy lawyer. 94.3% of debtors who filed under Chapter 7 in 2019 managed to get their debts discharged. Thus, if you are considering filing for bankruptcy, you stand a higher chance of your debts getting forgiven.
How Does Chapter 7 Bankruptcy Work?
The first step towards the process is filing a petition with a bankruptcy court around your area. You will be asked to file forms detailing your assets, income, expenses, property, and other financial information as you file.
After filling out the paperwork and petitioning to court, you will be asked to attend credit counseling. The court will appoint a bankruptcy trustee who will be acting on behalf of the court. The trustee will identify and approve a credit counseling agency for you.
Your trustee will go through your forms to identify if there are available avenues like debt consolidation that could help resolve your financial crisis without filing for bankruptcy. If the trustee decides bankruptcy is the right move, you will proceed to petition for bankruptcy.
Filing for bankruptcy will cost a few thousand dollars. You will be asked to pay for petition filing, attorney fees, and other expenses as stipulated. After receiving the petition, the court will organize a credit meeting where you will be sworn in and asked various questions about your financial situation.
There will then be a second counseling session, debtor education, to teach you how to properly handle debt to prevent being bankrupt again. The last step will be a judge discharging your debts, relieving you of the legal obligation to make repayments.
Why Hire a Chapter 7 Bankruptcy Lawyer?
Filing under Chapter 7 can be overwhelming with a lot of paperwork to handle. In addition, the information you provide needs to be accurate. Hiring a Chapter 7 bankruptcy lawyer offers you the guidance you need. Your lawyer will also handle the petition process, ensuring everything goes as planned, relieving you of the need to constantly check on the petition's status with the court. Contact a bankruptcy attorney today to start the process.