Is debt consuming your life? Are creditors calling non-stop, asking for payments? Do you own a business that you’d like to keep running but get the creditors off your back as you reclaim your life?
If you answered ‘yes’ to any of the aforementioned questions, then our bankruptcy lawyer may be able to help you through a chapter 7 bankruptcy case.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a form of relief for the debtor that does not require a repayment plan. Instead of working out reorganization, as in chapters 11 or 13, chapter 7 bankruptcy maximizes the assets of the debtor and sells property to acquire the money to repay creditors.
Who is Eligible to File for Relief?
Individuals, partnerships, corporations, and other types of business entities are eligible to file for chapter 7 bankruptcy at the local bankruptcy court. Moreover, chapter 7 does not discriminate between solvent and insolvent cases so long as the debtor has not filed bankruptcy under another chapter within the previous 180 days.
No matter which type of entity is filing, credit counseling is an eligibility requirement for chapter 7 bankruptcy. All entities must have received credit counseling within 180 days prior to filing bankruptcy. Credit counseling must be administered individually or in a group and led by an accredited agency.
How to Proceed with Chapter 7 Bankruptcy
File a Petition
Start the filing process for chapter 7 bankruptcy by filing a petition at the local court. There are a myriad of other documents necessary for filing that our bankruptcy lawyer can help you organize and present.
From tax returns to evidence of payment and beyond, the courts will need ample documents proving current income (if any), payment from employers, certificate of credit counseling, and other facts to help determine how to move forward with the case.
Moreover, prepare to list all creditors, the amounts, and the reasons for collection; the details of the debtor’s income; a detailed list of the debtor’s property; and a detailed list of the debtor’s monthly expenses.
In the United States, there is a standard $245 fee for filing chapter 7 bankruptcy, plus additional fees for misc. administration and bankruptcy trustee charges. These are due to the court; there are circumstances that warrant waiving the fees, which can be discussed with a professional lawyer who has your best interests in mind.
Upon filing chapter 7 bankruptcy, the creditors must legally stop calling and seeking payment because action is in progress. Folks filing chapter 7 bankruptcy must be prepared to lose property in exchange for relief.
To learn more and work with a professional chapter 7 bankruptcy lawyer, call Maxwell Dunn Law. Not only can we help you through the chapter 7 bankruptcy process, we can help you reorganize and rebuild your life after bankruptcy.
Contact us today to learn more about your possibilities of filing for chapter 7 bankruptcy.