Filing for bankruptcy feels like a choice of no choices. You have bills piling up, yet you don’t want anything to affect your credit score or ability to live later in life.
You also want to take care of your family, and you’re concerned for your children and loved ones who depend on you.
You may also feel like a failure. Declaring bankruptcy does not mean you failed. Sometimes, life happens and you need a fresh start.
We understand, and we’re here to offer you help and hope. Groce & DeArmon, P.C., can help you file for Chapter 7 bankruptcy.
We answer frequently asked questions about Chapter 7 bankruptcy in today’s blog.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy offers a legal way for individuals to discharge many types of unsecured debts so they no longer owe money for those debts.
What types of debts can I get rid of with Chapter 7 bankruptcy?
- Credit card debt
- Medical bills
- Personal loans
- Unpaid utility bills
- Phone bills
- Judgments from unpaid bills, such as credit card bills, medical bills, and unsecured loans
Who oversees Chapter 7 bankruptcy?
The U.S. (Federal) Court system appoints a trustee to oversee each case. The trustee makes sure each creditor receives any assets under the scope of bankruptcy, such as a house, and handles any concerns at a creditor meeting.
How do I qualify for Chapter 7 bankruptcy?
You must pass the means test, which assesses whether or not you have extra income to pay your debts. Your income must either be 1) Below a state’s minimum requirements or 2) Have more expenses than disposable income over the past six months.
You can only file for bankruptcy once every eight years.
How long does it take to finish a Chapter 7 bankruptcy filing?
Anywhere between four to six months from the time you file for Chapter 7 bankruptcy until the court finalizes the filing to make it official. During this time, creditors cannot collect debts from you.
How does Chapter 7 affect my finances after I file?
You will likely lose some property of some kind, like a house or perhaps a vehicle, when filing for Chapter 7 bankruptcy. Bankruptcy filings generally stay on your credit report up to 10 years after you file, so creditors will see this.
However, you can start to rebuild your credit immediately after your Chapter 7 bankruptcy is formally discharged.
Who can help me file for Chapter 7 bankruptcy?
An attorney can help you file for Chapter 7 bankruptcy.
Contact the dedicated bankruptcy attorney at Groce & DeArmon, P.C., or call 1-800-640-3706 in Missouri or (417) 862-3706 for a free initial consultation.