Filing for Chapter 7 bankruptcy can be one of the more complicated and stressful financial ordeals that some people face. The process can take time and will require them to diligently evaluate their finances, spending habits, and more.
However, if filing for Chapter 7 bankruptcy is the path you need to go down, the first step you need to tackle will be the filing process. In today’s post, Groce & DeArmon, P.C. will walk through the filing process for Chapter 7 bankruptcy.
Is Chapter 7 Bankruptcy Right For You?
The first step in the filing process is determining whether Chapter 7 bankruptcy is right for you. Chapter 7 makes the most sense for people who don’t have a lot of assets to lose, as debt is discharged through assets in Chapter 7. This is also a good course of action if your debts are more excessive, with the general benchmark being at least half your yearly income. There are other debt relief options, like Chapter 13, which will be discussed next week, so before filing, you should be confident that Chapter 7 bankruptcy is the best course of action.
Do You Qualify?
Once you determine that Chapter 7 is the best course of action, you have to find out if you qualify. To an extent, this will be part of the evaluation process, but there are people who would like to file under Chapter 7 each year and can’t. To qualify for Chapter 7, you must pass the means test, which is mainly an examination that takes a look at your income and assets.
You also won’t be able to file for Chapter 7 if you have previously filed for Chapter 7 in the past eight years or a Chapter 13 in the last six years.
How Do I File?
The time it will take to file for Chapter 7 varies from person to person, but it will typically take 4-6 months to complete. This process starts with credit counseling that must be done within six months of filing. The next step is to find an attorney who handles bankruptcy cases, such as Groce & DeArmon. Once you hire your attorney, most of the process will be out of your hands and include filing paperwork and being appointed a trustee. Finally, after all the necessary steps are taken, your debt will be discharged.
Contact Groce & DeArmon, P.C. For More Information
If you are in debt and think that filing for Chapter 7 bankruptcy might be the best solution, get in touch with Groce & DeArmon, P.C. at (417) 862-3706 or contact us online today.