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4 Things To Know About Filing Chapter 7 Bankruptcy

If you are unable to repay your debt because of a job loss or other reason, you should consider filing Chapter 7 bankruptcy. This will allow your debts to be discharged if you are eligible for this legal status. Getting the financial assistance that can help you get rid of debt can ease your mind. Knowing specific things about filing for bankruptcy can prepare you if you're faced with this situation.

Costs Involved

When you are low on funds, the last thing you want to face is steep filing fees. The cost for filing for a Chapter 7 bankruptcy is only $335. This amount will cover the court and administrative fees. However, if you retain a lawyer to assist you, this will be an additional expense.

Forms to Complete

You must prove you are unable to financially pay your bills. This will require you to fill out a number of forms, and these are listed below:

  1. The amount of your monthly income and  you will need to provide proof of this figure with a W-2.
  2. What it costs you to live each month including housing, food, clothing and other necessities.
  3. How much money you owe your creditors and if you owe more than one, this should be listed individually.

When providing this information on the forms, it's important to only list accurate figures.

Advantages of Filing

There are many benefits of filing for bankruptcy, in addition to having your debt discharged. The automatic stay is an advantage for debtors to have. This prevents creditors from calling your home and demanding that you pay the debts and keeps them from harassing you.

Additionally, the creditors you owe can't issue a lawsuit against you either. This can prevent a creditor from going after your car, home or other financial assets that you may own.

Trustee's Role

The court will assign you a bankruptcy trustee. The role of this person is to look at your financial history to determine if there is any money your creditors can be paid. The trustee is paid based on the amount of assets that can be uncovered to help repay your debt.

Finally, dealing with a financial difficult time can be challenging. If you feel the process of filing for bankruptcy is simply too much for you, be sure to retain the assistance of a bankruptcy attorney who can help guide you through this process with ease and expertise. To learn more, contact a company like Anthony Inserra Attorney at Law with any questions you have.