How To File Chapter 7

Are you tired of those creditors pressuring you to pay your debts?  Tired of those calls?  Then probably, you are thinking about filing for a chapter 7 so that you can get rid of all those debts as quickly as possible.  That might be a good an idea, the only problem is, do you know how to file chapter 7?

You can start by filing your bankruptcy papers in the bankruptcy court.  This is commonly referred to as filing a bankruptcy petition and this is the first step you need to make to get you debts discharged.  After you filed your papers, the bankruptcy court will notify your creditors that you have filed for bankruptcy chapter 7; a mail letter is usually the way bankruptcy court will inform your creditors.  When the creditors have been notified, the bankruptcy court will then assign a bankruptcy trustee in your case.  It is the trustee’s job to study your papers and will be the one to acquire any properties that you have that are considered nonexempt.  These properties will be subjected to the process of liquidation.

You need to provide your recent tax return to the bankruptcy trustee.  The bankruptcy trustee will use this for any legal requirements that are needed to be met.  Then a meeting will be held which is called the creditors meeting.  You have to attend this if there is no bankruptcy lawyer to represent you in the meeting.  This is where a trustee will ask you questions regarding your bankruptcy papers.  This meeting takes a few minutes and seldom takes an hour.

After the meeting, a means test will be applied to you.  This test is a tool that a bankruptcy trustee uses to determine if you have enough income to pay your debts or not.  This can also cause your papers to be sent back to you incase of amendments or something lacking or if there is something needed to be changed in your papers.  In most cases, it is either a bankruptcy trustee will dismiss your papers or adapt it to a chapter 13 which is a repayment plan if necessary.

Agreement will be made on which of your properties be liquidated and the bankruptcy trustee will require you to hand over properties that are nonexempt.  Then you are required to attend a credit counseling which is a requirement under the new bankruptcy law that was made effective October 2005.  If all goes well, the court will give the discharge of your debts and the case is closed after that.  This is where your bankruptcy status will start that will be with your for about 8 years.

If you want to learn on how to file chapter 7 cheaply, I suggest hiring a petition preparer to prepare your papers, you will only pay their flat fee then you can take your papers in the bankruptcy court and file them.  This way, it would not be too hard on your pocket. For more support on how to file bankruptcy, visit the link below.