Bankruptcy – Chapter 7
Chapter 7 Process
There are many reasons for filing a Chapter 7 bankruptcy. Often a person does not have the ability to pay their bills either because of being laid off, a divorce, or illness. There are many reasons for which it is not your fault. I understand that and You Are Not Alone! This is a difficult process and difficult to understand for everyone who has faced this financial problem. The following is merely a summary of what a Chapter 7 bankruptcy is about. I hope that it is helpful but you will gain more insight after we talk in person. Please call me to make an appointment.
If you had a complaint filed against you for collection of money or you have had a judgment rendered against you and are waiting for that garnishment to be served on your employer I can help. We can file a Chapter 7 petition for bankruptcy and stop the collection of your wages immediately. The judge will immediately issue a restraining order stopping all collection efforts filed by your creditors. This will help you sleep tonight knowing that I am on your side. A Chapter 7 Bankruptcy will allow you to discharge your debts and start over.
A chapter 7 bankruptcy begins when you file petition for Chapter 7 bankruptcy with the Bankruptcy Court. It must be in the County or within the district of the Bankruptcy Court where you live or work. If it is filed in the wrong County it will be transferred to the appropriate court. Most bankruptcies which I handle are filed in Birmingham, Tuscaloosa or in Montgomery. We can decide where it needs to be filed after you and I talk.
The petition for chapter 7 will include a listing of all of your assets, a schedule of your income and expenditures, a statement of your affairs and a schedule of your contracts and unexpired leases. You will also need to provide copies of your last three years of income tax returns and your payroll information for the last six months and your bank statements for that same period time.
When you come into my office we will give you a form packet which will help you in providing us with the information necessary to following your case.
Before you can file and while we are preparing your case, we will ask you to take a credit counseling course over the Internet. We will provide you with the necessary information to allow you to take the course. If for some reason that you are not able to have computer access you may do so by telephone and an operator will help you complete the process. We cannot file your bankruptcy case until we have your certificate of completion of this course. This is a requirement of the following.
We have helped many people through bankruptcy and find that a checklist is helpful both for you and us to help us keep on track with the complex city of what is a modern bankruptcy. So when you come in you will not be faced with keeping track of a lot of notes trying to take down everything that you need to know. Suffice it to say that we will make this process as painless as possible.
If you do not have a lot of equity in your home you may be able to keep your home if you continue to make the payments on it and you can afford to make those payments. You can usually reaffirm on your house and your car notes so that you are able to continue your daily life. However, if you cannot afford to continue those payments due to a decline income, lack of work, or illness it may well be to your advantage to let those obligations go.