The Basic Procedures After Filing for Chapter 7 Bankruptcy Relief

Written by Adam Peck Category: Nursing Homes January 23rd, 2013 3 min read

Chapter Seven personal bankruptcy is quite often called “straight” or sometimes “liquidation” personal bankruptcy — it cancels a person’s debts, however an individual could have to let the bankruptcy court liquidate some of a person’s possessions for the benefit of ones own debt collectors. (“Chapter 7″ refers to the section of the actual federal Bankruptcy Code which includes the bankruptcy law.)

Chapter 7 Personal Bankruptcy Fees in Time and Dollars

The full Chapter Seven individual bankruptcy course of action will take about four to 6 months and typically requires only a single visit to the courthouse.

One will have to also complete credit counseling with a particular agency authorized by the United States Trustee.

An individual will not always be able to utilize Chapter Seven individual bankruptcy in the event that an individual previously obtained a personal bankruptcy discharge during the previous 6 to 8 years depending on which sort of individual bankruptcy a person filed) or if, depending on ones own earnings, obligations, and debt burden, an individual might possibly perform a Chapter Thirteen repayment deal.

Declaring for Chapter Seven personal bankruptcy puts in to effect an “Order for Relief” — identified informally as the “automatic stay.” The automatic stay immediately prevents the majority of debt collectors from trying to collect everything that you owe them. Consequently, at least for the short term, creditors are not able to lawfully seize (“garnish”) an individual’s wages, clean your bank account, go after an individual’s motor vehicle, dwelling, or additional property, or cut off ones own utility services or welfare benefits.

By declaring for Chapter 7 personal bankruptcy, you are likely going to be putting the property you have as well as the debts you have in the hands of the personal bankruptcy court. An individual can’t sell or simply give away any of the property you own when you file, or pay off your pre-filing financial obligations, without having the court’s consent. Nonetheless, with a handful of exceptions, you can accomplish what you wish with property you acquire and income you get paid after you file for bankruptcy.

A week or maybe 2 after you file, you (and all the creditors you record inside your personal bankruptcy papers) are going to get a notice that a “creditors meeting” has been planned. The bankruptcy trustee leads the meeting and, after swearing you in, might ask you questions about your individual bankruptcy and the documents you filled out. In the vast majority of Chapter 7 bankruptcies, this is the debtor’s only visit to the courthouse.

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.