The Correct Process For Filing A Chapter 7 Bankruptcy Case

If you are going through a financial crisis, paying creditors, their due money can be an issue. You can reduce the pressure and stress by filing a chapter 7 bankruptcy. But doing it alone can be an additional headache. Hire a bankruptcy lawyer who can guide you through the process entirely. It helps to unwind the contract between you and your creditor. The bankruptcy lawyer is the one who can keep your property intact and help you with documentation for legal proceedings. Let’s talk about how the whole process works.

Eligible People

To file a chapter 7 bankruptcy, you can be an individual, a corporation, a partnership, or any other business entity. You can file the bankruptcy irrespective of the debtor’s debt, whether the debtor is solvent or insolvent.

The Oklahoma Chapter 7 bankruptcy lawyers can help all the honest individual debtors a fresh start. However, the discharge is available to individual debtors, not any legal entity.

If your income is more than the state median income, you must pass a mean test to understand if you can file for chapter 7. But if your income is too high or you are behind on your car or home debt but want to keep them, then chapter 13 might be better for you. The bankruptcy lawyer can help you understand all the available options and determine which is suitable for you.

The Process

The debtor files a petition with the bankruptcy court. In addition to that, the debtors also provide the following things:

  1. Schedules of assets and liability

  2. Schedules of current income and expenditure

  3. A statement of financial affair

  4. A schedule of executory contract and unexpired lease.

The lawyer helps the debtor by providing the case trustee with a copy of the tax return. The court charges a case filing fee. You can either give the full fee together or share it in installments. However, you have to pay the final installment within 120 days after filing the petition.

The debtor has to provide the following information to finish completing the Official Bankruptcy form, including the petition, schedules, and financial affairs:

  • A list of all creditors and the amount and nature of the claim

  • The frequency of debtor’s income

  • A list of debtor’s property

  • Their monthly living expenses

The 341 Meeting

You then have to complete this brief meeting with your lawyer and a case trustee at the bankruptcy court.

Discharge

The discharge then releases the debtor from personal liability for most debts. The bank orders a discharge relatively early in the court case unless the party in interest files a complaint objecting to the discharge.

Seek The Right Help

Reneau Law Group provides the best Chapter 7 bankruptcy lawyers for you to consult your case. Let us help you to take away all your stress. Call us today to schedule an appointment.

**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.