File Chapter 7 Bankruptcy in 7 Easy Steps :
Step 1- Search and register with a reputable bankruptcy attorney by researching the Internet or word of mouth by friends or family. It is very important to find a bankruptcy attorney who will work well with you as the process will take 4 to 6 months. It’s also nice to find someone you can trust because your financial future is in their hands.
A person looking for a bankruptcy attorney should see it as a team that comes together to play a sport. All team members are important for a successful outcome. Make sure you feel comfortable sharing your rewards and failures with the people you hire. If you don’t feel comfortable sharing information, many people tend to overlook important details which can be disastrous for the case.
Step 2- Gather all the information as directed by the lawyer to prepare the bankruptcy petition. This includes a complete list of all creditors, account numbers, account balances, and creditor addresses. If you’re not sure of the exact balance or the debt was sold to a collection agency, just enter the original creditor and the last known balance. As long as the original debt is registered, it will be paid off.
List all assets and show all expenses. Be sure to provide the bankruptcy attorney with proof of income such as payslips, bank statements, and tax returns. The bankruptcy attorney will use all of this information to prepare a bankruptcy petition.
Step 3- Take a court-mandated credit counseling course. These can be taken online for convenience and can be completed easily within a few hours.
Step 4- The bankruptcy attorney will now petition the court. Once submitted, debtors can now enjoy automatic stay benefits. Automatic suspension will stop all collection activity against the debtor. It is very strong will also stop foreclosures, lawsuits, appraisals and wage deductions.
Step 5- Attend a creditor’s meeting with a lawyer. The creditors meeting, or 341 meeting, is where the debtor meets with the bankrupt trustee and asks a few simple questions. These meetings usually last about 10 minutes and are rarely attended by creditors and debtors.
Step 6- Now that you are almost done and waiting for bankruptcy release, it is time to take a personal finance management course which is also offered online and is a bankruptcy court requirement.
Step 7- Sit back and wait for the bankruptcy release to arrive in the mail and look forward to a fresh financial start.
The author is a professional who provides information to debtors considering filing for bankruptcy under file Chapter 7 and Chapter 13 bankruptcy and helps individuals stop foreclosures and eliminate their debt by connecting them with local bankruptcy attorneys.