Is Chapter 7 Bankruptcy the Right Option for You?

The important thing to understand about Chapter 7 bankruptcy is that it entails the selling of your assets to pay off your creditors. According to the Bankruptcy Code, which outlines the rules that federal courts must follow for all bankruptcy cases, you may be entitled to keep certain exempt property, as opposed to non-exempt property, but you may be subject to mortgages or liens.

Do I Qualify for Chapter 7?

Eligibility is determined by a simple means test, which most people pass. After that, you’re one step closer to the relief you need.

Whether you’re an individual, in a partnership, part of a corporation, or otherwise associated with a business, Chapter 7 may be the right option for you. However, you’ll also need to undergo credit counseling within 180 days of filling.

Chapter 7 Bankruptcy, Step by Step

FILE A PETITION & OTHER PAPERWORK

First, you need to file a petition for Chapter 7 bankruptcy, as well as all the necessary paperwork — tasks we at Patton Knipp Dean, LLC can help you with easily. Keep in mind the court’s filing fees, which usually run about $335. If that poses a problem, a few more pieces of paperwork can get you court assistance.

WHAT THE AUTOMATIC STAY DOES FOR YOU

After you file a petition, debt collectors will stop harassing you for payment due to the automatic stay. This bars them from garnishing or claiming portions of your wages, among other actions they may take against you.

MEET WITH CREDITORS & A TRUSTEE

After meeting with creditors and a court-appointed trustee, we can reach a repayment agreement and get your debts discharged. The process generally takes 4 to 6 months, but you’ll see our hard work pay off as you enjoy a fresh start.