Understanding Chapter 7 Bankruptcy
A Chapter 7 bankruptcy is a debt liquidation that results in the reduction or elimination of certain debts that are subject to discharge by federal bankruptcy laws. To complete a typical Chapter 7 case, you are required to:
- Complete a Debtor Education class
- File an accurate and complete Schedule of Assets and Statement of Financial Affairs with the U.S. Bankruptcy Court
- Surrender any nonexempt assets to a court-appointed bankruptcy trustee
- Cooperate with the Bankruptcy Trustee by providing honest information and attending a Section 341(a) Meeting of Creditors
- Complete a second Financial Management course
Upon successful completion of these steps, a debtor will receive a “discharge,” which is a court ruling showing that the debtor’s debts have been eliminated. Keep in mind that certain debts cannot be discharged — debts like back child support payments, student loans and certain taxes.
How Will I Know If Chapter 13 Bankruptcy Is A Better Option?
Chapter 13 bankruptcy is often considered a repayment plan, rather than a way of removing debt. Usually, this happens over 3-5 years and involves the debtor making payments to a third-party trustee, who then administers payments to creditors. After the court has approved the repayment plan, creditors must stop attempting their collection efforts.
If you’re facing insurmountable debt and looking for a way out, the attorneys at Sellers & Mitchell, P.C. can help. We will listen to the details of your situation and help you discern whether Chapter 13 is the right filing for you. Our legal team can help free you from your debts and build a stronger financial future.
Call Us To Learn If Chapter 7 Bankruptcy Is Right For You
Our experienced, knowledgeable staff look forward to answering your bankruptcy questions. The sooner you get started, the sooner you can gain control of your financial future. Call 229-226-9888 today or email us to schedule your no-obligation consultation. Get the legal help you need when you need it.
Sellers & Mitchell, P.C. is a federally designated debt relief agency assisting consumers seeking relief under the United States Bankruptcy Code.