Most of the subsequent actions regarding your case takes place in the trustee's office. you are discharged of your debts.
Are you an honest debtor who is unable to clear his debts because of some unforeseen financial crisis? Are you looking for a fresh start? Then Chapter 7 of the U.S. Bankruptcy Code offers you a chance to get creditors off your back while protecting your assets.
As a debtor,
under Chapter 7 you can keep some of your assets while the rest are used to pay your creditors. Your debts are then cleared. This type of bankruptcy takes the shortest amount of time to resolve out of several bankruptcy types.
Am I Eligible for Chapter 7?
You can find out if you are through two tests:
Means testing: This test looks at your disposable income. If you have an income that is just sufficient to pay for the basic needs of your household, then you qualify under chapter 7. The standard is your state's median income. If your income is above this median, and you can pay a certain amount of your debts even after meeting your basic needs, then you will be shifted to Chapter 13 bankruptcy. Ask your bankruptcy lawyer to help you with assessing your situation.
Mandatory Credit Counseling: Under the bankruptcy code credit counseling has been made compulsory. You will find this is to your own benefit as it will educate you about debt and increase the chances of success in your bankruptcy case.
I am Eligible, What Next?
File the official petition at the bankruptcy court. You have to provide some documents. These include:
A list of your creditors and how much is owed to them.
Details regarding the source and frequency of your income.
A list of your assets.
A list of your monthly expenses.
Next, appoint a trustee. Your trustee is in control of your assets from this point. He will hold the 'First Meeting' after which you don't need to visit the court any longer. Most of the subsequent actions regarding your case takes place in the trustee's office.
What is the 'Automatic Stay?'
As soon as you file for bankruptcy, the law forces all your creditors to stop any action against you. They can't try to collect their debts from you nor can they file proceedings against you. This will give you much-needed peace of mind.
Which of my assets can I keep?
Whatever is considered 'exempt' depending on a federal or a state list. The classification varies from state to state.
What is the 'First Meeting' or the '341 Meeting'
This is a meeting with your creditors and trustee that you must attend. Here you are asked to present your debt and asset records. After this meeting your creditors have about 60 days to convince the court that you should pay your debts. After this time, you are discharged of your debts.
Looking to file a bankruptcy claim under Chapter 7? Oklahoma City's lawyers can help you with assessing your situation and show you the quickest way to be free of your debts. Take the chance that the state offers you to start afresh and regain your peace of mind.
