How to File for Chapter 7 Bankruptcy

2007-04-17 10:41:55

( Legal )



When you or your business is badly in debt, then you should learn how to file for chapter 7 bankruptcy. Knowing how to file for chapter 7 bankruptcy is essential when you are already unable to pay back your creditors and your unsecured debts, such as credit cards and personal loans.

The first step in filing a chapter 7 bankruptcy is making sure that chapter 7 is the most appropriate bankruptcy option for you. Chapter 7 bankruptcy, also known as straight bankruptcy, refers to complete liquidation of most of your properties to pay your creditors. For your business, it refers to ceasing all your business operations. Bigger companies can opt to sell portions or divisions of the business. This is the most common kind of bankruptcy filed.

If you do not know how to file for chapter 7 bankruptcy, consider consulting a lawyer, specifically a bankruptcy attorney, to help you. Another alternative is to purchase bankruptcy kits available in the market. If you’d rather do it yourself, you have to first obtain all the necessary forms from the bankruptcy court or their website.

You have to undergo credit counseling, which is mandatory. Otherwise, your case will be immediately dismissed. After you have finished this, you may now file the petition at your bankruptcy court. You should also include the bankruptcy forms, which include lists of your assets and liabilities, your income and expenses, debts, and contracts. Filing a petition requires you to pay a certain amount of money; however, this fee can be waived if you are already under severe debt.

After filing your petition, you are obligated to attend a course on financial management education. This may also require a fee. A month or so after filing, you are required to attend a meeting of creditors. This will allow the people you owe to ask you about your financial state.

If your petition is dismissed, you cannot file for another one for the next 6 months.

At the end of the process, you are discharged. This means that you do not have to pay your discharged debts anymore. Those you owe also cannot file lawsuits against you anymore. Now you are ready to start anew!


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