Are you drowning in debt that you cannot pay? If so, have you thought about visiting a bankruptcy attorney to learn more about bankruptcy and how it works? If your debts consist primarily of credit card bills and medical bills, Chapter 7 is probably the way for you to go. If you want to know how this works, here are three essential facts about the way Chapter 7 bankruptcy works.
1. The Eligibility Process
The first part of using Chapter 7 is going through the eligibility process. You cannot use this branch without qualifying, and it is not hard to determine if you qualify. To find out, you can meet with an attorney. When meeting with them, bring proof of your income for the last six months, and bring a list of your debts. From this information, an attorney can tell you if you qualify for Chapter 7 and whether it's the right option for you. If you discover that you are eligible and that it is the right branch, you can start filing.
2. How Chapter 7 Views and Handles Debts
Before you file the documents, your attorney can tell you how Chapter 7 works. During this conversation, your attorney will tell you several things. First, they will explain the debts that qualify for a discharge in Chapter 7. Qualifying debts receive forgiveness, leaving you with zero balances. Secondly, your attorney will view your assets. The court might seize some of these things from you in your case, but there is also a chance you will lose nothing. You will be responsible for paying any debts that do not qualify for a discharge under Chapter 7 bankruptcy laws.
3. The Discharge and Timeframe of the Case
The next thing to know is that a typical Chapter 7 case takes only six to ten months. It ends when the court issues the discharge of your debts. This date is the date of discharge for your case, and it concludes your case. When you receive this notification, you can move on with your life by trying to improve your credit.
If you have a lot of unsecured debt that you cannot repay, this is the branch you might want to use. Chapter 7 provides immense relief to people with large amounts of credit card debt and similar types. If you have questions, please talk to a bankruptcy attorney to learn more about your options.