Chapter 7 Bankruptcy Application

A person can apply for a chapter 7 or a chapter 13 type of bankruptcy, whichever the person is eligible to file.   You can start your chapter 7 bankruptcy application by filing a bankruptcy petition in the bankruptcy court.  Before you can file your bankruptcy petition in the bankruptcy court, you have to prepare your papers.  You can either prepare your papers by yourself or hire a petition preparer or a bankruptcy lawyer and let them prepare it for you.  Preparing your own papers can be hard but you can get some information or help online.  You can download Bankruptcy PDF forms online or acquire the service of an online bankruptcy lawyer.  In preparing your papers, I suggest hiring a petition preparer or a bankruptcy lawyer to do this for you.  This can avoid having mistakes in your papers because professionals are the ones that prepare your papers.  Remember that errors and mistakes in your papers can have a great effect on your bankruptcy process and can cause you to hand over more properties that are put through the process of liquidation.

Another important thing in your chapter 7 bankruptcy application is that you need to pass the means test.  This test is all about the bankruptcy trustee finding out if you are eligible to file a chapter 7 or not.  The means test will determine if a person has other means to pay his debts.   If he does, then the bankruptcy trustee will convert his bankruptcy to a chapter 13, which is a repayment plan.  Having no means to pay your debts will let the bankruptcy trustee to approve you to continue your chapter 7 bankruptcy application.

There are new bankruptcy laws that are required.  This started to take effect last October 2005 under the BAPCPA.  Some of these laws require you to attend a credit counseling session.  You can find this type of counseling at a credit counseling agencies.  These agencies also help people make a repayment plan for their debts.

A meeting will be held which is called the creditors meeting that you have to attend or a bankruptcy lawyer that will represents you if you have one.  The creditors will be there and the bankruptcy trustee will question your case.  After the meeting is done, the next step would be the negotiations of your properties, determining the nonexempt which will be used in the liquidation.  After this, you will have to hand over your properties that were stated as nonexempt.

After, the liquidation is done and the proceeds had been paid to you creditors.  The bankruptcy court will close your case and discharge your debts.

There are many ways you can start your chapter 7 bankruptcy application.  In order to avoid mistakes, it is encouraged that you hire a bankruptcy lawyer or a petition preparer to preparer your papers.  Then pay their flat fee and you can get to file your bankruptcy papers in court.  For more support on how to file bankruptcy, visit the link below.