Chapter 7 Bankruptcy Attorney
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is also known as "liquidation" bankruptcy. Chapter seven is designed to allow individuals and business to wipe out certain debts; hence, my web site name www.iwipeoutdebt.com. The law is actually embodied in Title 11 of the US Code. Under that code section Chapter 7 is the chapter which explains the discharge of debts. All of the steps for getting out of debt are embodied in the Laws of the United States of America. The bankruptcy process involves liquidating the debtor's non-exempt assets to pay off creditors. However, this liquidation is very rare. Most of my client lose nothing to the Chapter 7 Trustee. After a hearing and complying with all of the court rules the court will issue a discharge of debt. Any debts that are entitled to the chapter 7 discharge will be discharged. Once the court enters the discharge those debts are blocked from ever being collected by a creditor.
How does Chapter 7 bankruptcy work?
Step One:
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Prepare all of your Bankruptcy documents. Please click this link to see some of the OFFICIAL BANKRUPTCY DOCUMENTS that must be filed with the bankruptcy court in your jurisdiction. If you are filing Bankruptcy in Tucson Arizona I can prepare all of your documents and help you file your Chapter 7 bankruptcy.
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Step Two:
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Under 11 U.S.C. Section 109(h) all individuals MUST complete a credit counseling and provide the court with a certificate. Click here to see a sample CREDIT COUNSELING CERTIFICATE. BEWARE! This counseling must be completed prior to filing bankruptcy. There is one additional course that must be done after filing. This certificate gets filed with the court when you file your case.
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Step Three:
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To file for Chapter 7 bankruptcy the debtor (or your attorney) must first file a petition with the bankruptcy court. The petition is almost like the Title Page of the case. It is telling the court and the general public what you, as the debtor ,are doing; i.e. Hi my name is Jon Doe and I am Petitioning (asking) the court for a bankruptcy discharge of my debts. There are many other documents that must be filed when you file your case. BEWARE! If those documents are not filed timely your case can be dismissed. Click here to see a sample Chapter 7 Petition.
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Step Four:
The court will appoint a trustee to oversee part of the bankruptcy process. The trustee can take your assets that are not exempt and pay certain debts. Remember this is one of the reasons that you hire a knowledgeable attorney to help you keep your assets. The trustee will review the debtor's financial information, including their assets, debts, and income.
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Step Five:
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The debtor must then attend a meeting with the trustee and their creditors (don't worry creditors hardly EVER show up). During the meeting, the trustee will ask the debtor questions about their financial situation. Creditors may also attend the meeting and ask questions. This is referred to as the section 341 meeting of creditors. If you have hired the right attorney you will be prepared for all of the questions that the trustee will ask you. After the meeting the trustee will begin the process of liquidating the debtor's non-exempt assets. The proceeds from the liquidation are then used to pay off the debtor's creditors.
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Step Six:
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The debtor must complete the Debtor Education required course. Once the course is complete you will be eligible for your discharge so long as you have complied with all of the rules and requirements.
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Step Seven:
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The court will enter the discharge. This usually happens within 5 to 6 months of the filing of the petition.
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Conclusion:
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These are the basic steps to file for Chapter 7 bankruptcy. This synopsis is meant to give a roadmap to understand the process. Issues will arise in most cases. It is vital to get a free consultation from a Tucson bankruptcy attorney to protect your assets. Call us today to schedule your free consultation.
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