For those facing financial hardship without any foreseeable change to their status, filing for Chapter 7 bankruptcy is an effective solution. Doing so will provide you with the relief and means to get back on track and start rebuilding your credit. However, to maintain the best result, there are some steps you need to take throughout the proceedings. Here’s some insight into the best practices for bankruptcy procedures, so you can make the most of your petition.
How to Successfully File for Chapter 7 Bankruptcy
1. Provide the Courts With All of the Necessary Documents
When you begin the petition, you’ll need to provide the courts with an accurate paper trail of your financial status and history. Failing to provide certain documents will lead to delays and possibly even a denial, so work with your lawyer to get all the documentation in order before filing. This should include the last six months’ worth of paystubs, the past two years’ tax returns, and a certified appraisal of any property you own.
2. Prioritize Credit Counseling
Part of the steps needed to approve a Chapter 7 bankruptcy petition is completing a credit counseling course. The courts do provide a leniency period of 180 days from the date your petition is filed, but delaying enrollment will only lead to further days in getting your debts cleared. Opt to start as soon as you begin the proceedings to minimize obstacles and delays.
3. Don’t Hide Any Assets
The goal when working with the courts is to be as cooperative and compliant as possible. Chapter 7 bankruptcy is meant to be a rehabilitative option, and the courts want to know you’re taking the new start seriously. If they believe you’re hiding any information, your petition will likely be denied. As such, it’s crucial to disclose all property, assets, and accounts in your name.
If you’re preparing to file for Chapter 7 bankruptcy, the team at The Gil Law Firm in Dothan, AL, can assist. With nearly two decades of legal experience, they have the knowledge and insight needed to ensure the most favorable outcome possible in your case. Visit their website for more information on their practice, and call (334) 673-0100 to schedule an initial consultation.