How a chapter 7 bankruptcy case works

Are you considering filing for Chapter 7 bankruptcy but don’t know where to start? We’ve got you covered. Not only can it provide much-needed relief from debt, but it can also be a straightforward process if you have the right information. In this blog post, we’ll cover all you need to know about how a Chapter 7 bankruptcy case works. We’ll look at what it is, the requirements to file, and how to get the ball rolling. With the right advice, you can commence the process with confidence and be on the path to financial freedom.

Filing for bankruptcy can be a daunting task, but it doesn’t have to be.

If you’re considering filing for Chapter 7 bankruptcy, you’re likely struggling with a lot of debt. Maybe you’re behind on your mortgage or car payments, or you’re dealing with credit card debt, medical bills, or personal loans. Whatever the case may be, you’re not alone. In fact, according to the American Bankruptcy Institute, more than 775,000 people filed for Chapter 7 bankruptcy in 2019 alone.

While the thought of filing for bankruptcy may be overwhelming, the process doesn’t have to be. In this blog post, we’ll cover everything you need to know about how a Chapter 7 bankruptcy case works. We’ll look at what it is, the requirements to file, and how to get the ball rolling. With the right advice, you can commence the process with confidence and be on the path to financial freedom.

What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy is also known as liquidation bankruptcy. It’s the most common type of bankruptcy filed in the United States.

Under Chapter 7, a trustee is appointed to sell your nonexempt assets and use the proceeds to pay your

debt. However, most people who file for Chapter 7 bankruptcy don’t have any nonexempt assets, so their creditors don’t receive anything.  Your bankruptcy attorney can advise you how they can protect your belongings. 

Chapter 7 bankruptcy can provide relief from overwhelming debt and a fresh start financially.

The requirements to file for Chapter 7 bankruptcy

There are a few requirements you’ll need to meet in order to file for Chapter 7 bankruptcy. First, you must complete a means test. This test will determine if you qualify for Chapter 7 based on your income and expenses.

If your income is below the median income for your state, you will automatically qualify. If your income is above the median income, you’ll need to complete the means test to see if you qualify.

You’ll also need to complete credit counseling from an approved provider. This can be done online, over the phone, or in person. Once you’ve completed credit counseling, you’ll receive a certificate that you’ll need to file with your bankruptcy petition.

How to get the ball rolling on your Chapter 7 bankruptcy case

Now that you know a little bit more about how a Chapter 7 bankruptcy case works, it’s time to get the ball rolling on your own case.

The first step is to find an experienced bankruptcy lawyer who can help you navigate the process. Your lawyer will be able to answer any questions you have and help you determine if Chapter 7 bankruptcy is right for you.

Once you’ve found a lawyer you’re comfortable with, they’ll help you gather the necessary documentation and file your petition. From there, the bankruptcy process will commence.

It’s important to keep in mind that each case is different, so the amount of time it takes to complete the process will vary. However, with the help of a qualified bankruptcy lawyer, you can rest assured that you’re in good hands.

If you’re struggling with debt, filing for Chapter 7 bankruptcy may be the best option for you. With the help of an experienced bankruptcy lawyer, you can get the process started and be on your way to financial freedom.

While the thought of filing for bankruptcy may be overwhelming, the process doesn’t have to be. With the right advice, you can commence the process with confidence and be on the path to financial freedom.

Reach out to us now for a free bankruptcy consultation.