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As the most common form of bankruptcy filing for individuals and families, Chapter 7 liquidates assets for redistribution to pay outstanding debts to creditors. Numerous assets are exempt from Chapter 7 bankruptcy, including main residences, vehicles, commercial properties that earn income, and assorted retirement funds. If filing is right for your financial needs, use these tips to streamline the process.

How to File Chapter 7 Bankruptcy

1. Ensure You Qualify

Make certain you are eligible for Chapter 7 by passing the related test before you start filing paperwork. If your income is such that you can repay your debts without having to file, you will not qualify.

The court will also deny your filing request if you received a Chapter 7 discharge within the past eight years, got a Chapter 13 discharge within the last six years, defrauded your creditors, or violated a court order. If you do qualify, you must take a credit counseling course before you can file.

2. Fill Out Appropriate Forms With an Attorney

bankruptcyHire a bankruptcy attorney to file the forms listing your income, properties and assets, debts, previous transactions, expenses, and other relevant information. An experienced lawyer will help you complete all forms without any errors or incomplete sections that delay the filing process.

Submit the forms to your local courthouse in person as a practice run for your Chapter 7 meeting. Once you file, you will be assigned a trustee who will schedule a meeting with you and your creditors to resolve your debt.

3. Prepare for the Creditor Meeting

Work with your attorney to prepare for your meeting. As a legal professional, they know what kind of questions the trustee and your creditors will ask.

Your lawyer can give you tips for answering questions quickly and correctly, including those regarding how you intend to manage debts once the bankruptcy is granted. Taking a second job, for example, and selling assets exempt from Chapter 7 are examples of debt resolution.

You will also forward copies of financial statements to the trustee before the meeting, including bank statements, tax returns, pay stubs, and profit and loss statements.

 

Get Chapter 7 bankruptcy filing assistance from LaRowe Gerlach Taggart LLP to resolve your debts. Serving Adams, Columbia, Dane, Juneau, Richland, and Sauk counties, WI, for over 35 years, this law team offers a combined 175 years of experience and provides a range of legal services. Call (608) 524-8231 to schedule a consultation, visit the website for information on their practice areas, and get the latest firm updates on Facebook.

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