Understanding Chapter 7 Bankruptcy

Law Blog

Nobody dreams about filing for bankruptcy, but for many people, it becomes of the best decisions available. Chapter 7 bankruptcy is one of the most popular options for individuals, but it still presents many questions for those filing for the first time. The answers to these questions help you make the best decision for your finances.

Who Is Eligible to File Chapter 7?

Unfortunately, many people will not qualify to file for Chapter 7 bankruptcy. Your income will be a major qualification. You may have an easier time qualifying if your income stands below the median income for your particular state.

Your history with bankruptcy will also come into play. If you have already filled in the last few years, this will also impact your eligibility.

How Long Does Chapter 7 Bankruptcy Take?

Generally, Chapter 7 takes several months. You could be waiting half a year for your bankruptcy to be complete, but for many people, this process is still worth their while.

What Information Is Necessary to File Bankruptcy?

You can file bankruptcy with some basic information. For example, you will be asked about any property you own as well as your current income and debts that you owe. You will also describe the property you have owned and the money you have spent in the recent past. You will then be asked to come to a meeting with creditors where your future will be discussed, including what you will still pay to creditors.

What Happens During the Creditors Meeting?

When you meet with creditors, you will gather at a meeting with representatives for the creditors you have listed on your bankruptcy. The trustee will discuss your paperwork, and you may answer some questions about your assets and debts. This meeting is relatively short for most who file.

Who Will You Be in Contact With?

When you file bankruptcy, the court will assign a trustee for your case. This means this person will oversee which creditors receive payment and how much payment they receive. Trustees look over your documents to determine how creditors can get back some of their losses.

Before Filing, Speak With a Professional

Are you looking for the best way to change your financial status? Do you want to make changes that will benefit your future? Now is a great time to speak with a professional to discuss bankruptcy and your own options. There is no one-size-fits-all solution.

To learn more about bankruptcy, contact a bankruptcy law firm like McCool & McCool.


30 November 2021

Noni and the Accident

My name is Noni. When I was in college, I was hit by a car while crossing the street. My life was never in danger, but I did break a few bones and had a lot of huge medical bills. I was hoping I wouldn't have to get involved with an attorney, but unfortunately, it came down to that. I used a family friend who is an accident attorney to get some compensation. A few years later, I was hit while riding my bike and had to go through the same process. I suppose I'm lucky to be alive. And it's thanks to accident attorneys that I have been able to put my life back together. I started this blog as a way to let others know just how much lawyers can help you in certain situations.