Bankruptcy

5 Keys to a Bankruptcy!

Bankruptcy…The ins and outs. Bankruptcy is a very complex area of law requiring the documentation of all assets and debts. Most know of filing for a Chapter 7 Bankruptcy. Chapter 7 bankruptcy is the most well-known and common form of personal bankruptcy in the United States today. The rules and regulations for filing chapter 7 bankruptcies have changed significantly since the Bankruptcy Abuse Prevention and Consume Protection Act of 2005. Additionally, the number of Chapter 7 bankruptcy filings has increased dramatically due to the current economic state of the United States and other surrounding countries.  Bankruptcy may be very complex to file a petition; however there are only a few steps to filing a bankruptcy. The following is a guide to filing a chapter 7 bankruptcy.

Preparing For Filing

First, you need to complete a credit counseling session with one of the bankruptcy court’s accredited centers. The certificate you receive upon completion will be required in your bankruptcy petition. Although you can file for Chapter 7 bankruptcy on your own, it’s also best to hire a bankruptcy attorney to represent you and deal with your creditors.

The Means Test

Before you can file for Chapter 7 bankruptcy, you will need to qualify through the means test. This is basically a test of your ability to pay off your debts. If your income is below the state median, you can file for Chapter 7 bankruptcy. Otherwise, you will be advised to file under Chapter 13, which involves a repayment plan. Your bankruptcy attorney can help administer the means test and ensure accurate results.

Filing Your Petition

Your Chapter 7 bankruptcy filing will include several forms, known as “schedules,” where you provide information on your total debt, income, assets and liabilities, and current creditors. Make sure your information is accurate, as even minor discrepancies can delay or even dismiss your case. You will also need to pay administration and miscellaneous fees upon filing.

The 341 Meeting

You will be called to a meeting with your creditors, commonly called the “341 meeting” after the Bankruptcy Code section where it appears, about a month after your filing. During the meeting, a bankruptcy trustee will go over your Chapter 7 bankruptcy information and identify which assets can be liquidated. Creditors can also ask questions during the meeting, although they are seldom present.

Discharge

After the 341 meeting, there is a 60-day wait during which creditors can contest the terms of the bankruptcy. If no one makes such a move, you are discharged from your debt a few days after the 60-day period has passed. To make the discharge official, you will need to attend a debtor education session. This is similar to the credit counseling course but slightly longer. Once you present your certificate, you are officially discharged from your debt.

If you have questions regarding bankruptcy or you are interested in filing for bankruptcy in Sacramento please contact the Law Offices of Bowman and Associates today and ask to speak to one of our trained professionals or attorney’s.

The Law Offices of Bowman and Associates have helped many Americans with his or her bankruptcy filing. Bowman and Associates are going to assist you throughout each step of the process and help ensure you that you have made the right decision for a brighter future.

Call today to schedule your free initial consultation! 916-985-2600.

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