Filing for Chapter 7 bankruptcy requires taking several important steps. When completed properly, this complex process relieves long-term debt and gives individuals and businesses a fresh start in four to six months from filing. These do’s and don’ts below will help you prepare for pursuing this court action as a debt relief solution.

Do:

Consult a bankruptcy lawyer.

Discuss your situation in detail with an experienced bankruptcy attorney before filing. Your lawyer will explain the Chapter 7 bankruptcy process, options for your circumstances, and advise you about requirements including the means test and financial counseling sessions.      

Make a list of assets and liabilities.

Take a thorough inventory of what you own and who you owe. Gathering and organizing all the financial information enables your lawyer to prepare your petition and schedules accurately.

Include all of your debts.

Debts you leave off your petition and schedules are not covered under the automatic stay and cannot be discharged. Review your records, Chapter 7 bankruptcy petition, and schedules in great detail to ensure they are complete and correct. 

Don’t:

Withhold information from your attorney or the court.

Don’t try hiding anything about your finances from your lawyer, the bankruptcy trustee, or the court. Giving incomplete or false information can lead to petition dismissal and civil or criminal charges for fraud or perjury.     

Expect all debts to be discharged.

If you owe debts including back taxes, alimony, or child support, you must pay them. Federally guaranteed student loans are dischargeable in rare cases.  

Fall back into the old traps.

Your Chapter 7 bankruptcy discharge offers a fresh start. Don’t resume the same behaviors that got you into money troubles. Ask your bankruptcy lawyer for advice on managing money and avoiding unnecessary debt. 

Chapter 7 bankruptcy gives you a second chance to succeed in personal or business financial affairs. Michael D. Doyle, Attorney At Law is dedicated to serving individuals overburdened with debt to take full advantage of this court-directed option. Based in Elyria, OH, this dynamic lawyer offers wise counsel and strong advocacy, backed by more than 25 years of experience. Visit his website for more information now or call (440) 323-0001 to schedule a consultation appointment.