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A Simple Guide to Chapter 7 Bankruptcy

Compared to filing Chapter 13 bankruptcy, filing Chapter 7 bankruptcy does not involve proposing a repayment plan with an Aurora bankruptcy attorney. Instead, the bankruptcy trustee gathers and sells your nonexempt assets and uses the proceeds to pay holders of claims. As a result, filing for Chapter 7 bankruptcy may result in loss of property.

Qualifying

In order to qualify for Chapter 7 bankruptcy relief, you must be an individual, partnership, or corporation. You must also pass the means test if you are an individual debtor, no matter your debt amount. Additionally, you will be ineligible to file Chapter 7 bankruptcy if you had a bankruptcy petition dismissed due to willful failure to appear before a court or comply with court orders in the preceding 180 days. You must also receive credit counseling from an approved agency in the preceding 180 days before filing.

Filing

You can begin your Chapter 7 case by filing a petition with the bankruptcy court serving the area where you live or where your business is organized and has its principal place of business. In addition to filing your petition with your bankruptcy lawyer in Aurora, you must include schedules of assets and liabilities, a schedule of your current income and expenditures, and a statement of your financial affairs. You must also provide your assigned trustee with a copy of your tax return or the transcripts for your most recent tax year.

Discharging

Once you receive a bankruptcy discharge, you will no longer be personally liable for most of your debts. Your discharge also prevents your creditors from taking any collection actions against you. However, your Chapter 7 discharge is subject to many exceptions, so you need to consult with a bankruptcy law firm in Aurora to discuss the scope of your discharge.

Cutler & Associates, Ltd. has more than 20 years of experience in helping clients secure debt relief through bankruptcy. Our bankruptcy attorneys in Schaumburg offer quality guidance in areas such as debt negotiations, consolidations, and relief. To learn more about filing for bankruptcy, please call (224) 836-4956.

Categories: Bankruptcy Blog

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