Qualifications and Guidance
It is essential to ensure you satisfy the requirements for bankruptcy. When you can repay a portion of your debts through chapter 13, filing for chapter 7 can be a costly error. This will be viewed as taking advantage of the system and may impact any future bankruptcy claims. Consult a bankruptcy attorney before filing for chapter 7 to prevent this from happening.
The courts require a counseling session before a case can be officially lodged. This must be done within six months of the filing date.
Create a Case
The next stage is to visit the courthouse and sign the required documents. The courts will then notify creditors, and debt collectors will cease phoning.
After 20 to 40 days, the person who filed for bankruptcy will confer with their creditors. This is referred to as a """"341 summit. "" Frequently, creditors do not take part. After this step, creditors must report unsecured debts that they believe are ineligible for cancellation.
At this stage in the chapter 7 bankruptcy procedure, a significant portion of your debts may be discharged.
Since 2008, the National Bankruptcy Research Center reports a 32% increase in chapter 7 bankruptcies. Therefore, the government is becoming increasingly selective about who receives this status. Understanding the process and timeline will be advantageous for those who wish to successfully file for chapter 7 bankruptcy.
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