What is Chapter 7 Bankruptcy? – Giddens Law
Simply put, Chapter 7 bankruptcy is the liquidation of your non-exempt assets. Filing for Chapter 7 bankruptcy can help get you back on your feet by clearing most of your debt permanently. The process may take several months, but once it is complete, your debts will be discharged and you will have a fresh start. This process allows individuals to exempt many of their assets from their creditors. For sound legal advice on which debts to exempt from your creditors, contact the Chapter 7 lawyers at theLaw Office of George “Dave” Giddens, P.C. today.
Filing Chapter 7 Bankruptcy – What is Chapter 7 Bankruptcy?
Because of the complicated rules and the maze of paperwork involved in Chapter 7 Bankruptcy, it is in your best interest to obtain an experienced Chapter 7 lawyer before you file for bankruptcy. Filing for bankruptcy requires that you provide a careful accounting of all your debts and assets. Should you make a mistake in this process, you may have to begin the process again. And in some cases, people have even been charged with bankruptcy fraud for misreporting their debts and assets. Some requirements of bankruptcy include:
Mandatory counseling: Revisions to federal bankruptcy law in 2005 require individuals filing for bankruptcy to obtain a certificate from a credit counseling agency. Often, counseling can be completed online. Our bankruptcy lawyers can help you find an approved credit counseling agency.
File appropriate documents: Next, our attorneys will help you properly file documents such as your bankruptcy petition, schedule of assets and liabilities and Statement of Financial Affairs with the court. We also help you pick the best exemptions available to you so you get to keep as much of your property as the law allows. Upon filing, the automatic stay goes into effect to stop creditor collections on debts you owe.
Meet with a Trustee. In Chapter 7 bankruptcy, you are required to meet with a bankruptcy trustee who will liquidate your non-exempt assets and distribute them to your creditors. The trustee will also look for signs of fraud and report anything suspicious to the appropriate authorities.
Wait for objections to exemptions or to discharge: Though most of the time no objections are filed, your creditors and trustee have a 30-day window to object to the property you claimed exempt. They also have 60 days to object to you receiving a discharge of your debt. Usually objections are due to fraud, when you borrowed the money or if you made false statements during the filing process.
Financial management course: In individual bankruptcy cases, you must complete a financial management course in order for the court to discharge your debts. Failure to complete this step at the proper time will prevent you from receiving a discharge.
Debts are discharged: This is the reason you filed for Chapter 7 bankruptcy in the first place. The discharge is a court order that you no longer are legally liable for your debts. The discharge does not wipe out mortgages on property or security interests that you gave to a creditor as collateral for a debt, such as a car loan.
The Chapter 7 lawyers at Giddens Law have the knowledge and experience you need to help you file for Chapter 7 bankruptcy. We understand that bankruptcy is a personal decision and will analyze your case closely to help you determine the best course of action for your unique situation.
Giddens Law – Trusted Advisors
Dave Giddens is AV-rated by Martindale-Hubbell©, a lawyer peer review service. The AV rating is the highest possible rating available and reflects our record for ability and integrity in bankruptcy law. Bankruptcy is not for everyone. If we believe your case does not require you to file for bankruptcy, we won’t attempt to persuade you otherwise. To reach trusted Chapter 7 lawyers with proven track records in bankruptcy, contact us today.
For comprehensive legal services in the areas of commercial and consumer bankruptcy, business litigation, real estate foreclosures (lenders and borrowers) and more, contact us at (505) 916-8358 or toll-free at (877) 913-4892 today to speak with one of our attorneys in Albuquerque, NM.
The Firm is a debt relief agency that helps people file for bankruptcy under the bankruptcy code.