How a Chapter 7 Bankruptcy Saved Me
I stayed for Chapter 7 bankruptcy about a year ago.
Oohhh .... GASP ... FAILURE
How To File Chapter 7 Bankruptcy
I came to know absolutely nothing about the process was all I knew I had $ 60,000 in debt. I had a mortgage company that "paid in full" was my act of mortgage standards. Nine credit card companies (they are using, so nice to me), I could not understand the concept of being "fired". And a boy who came into the middle of the night and my RepossessedFord Ranger.
I am not a lawyer and I'm not going to give any legal advice. I'll just relate my experience of the process for you, so you can maybe learn a few things.
First, my suggestion to find a really good bankruptcy lawyer. I know. Depending on what your financial situation, you may feel that it is not an option ... They do not make a choice .... make it a priority!
My total cost was $ 1.400 for the use of a good lawyer .... Let's see ... I paid $ 1,400and received $ 60 000 debt completely erased. I must admit, one of the movements I made in the last financial year.
I have been wounded pride in a bad financial situation and had to seek help from family and friends.
Some of the debts that you can not write in Chapter 7 are as follows:
Debts for most taxes, debts, domestic support obligations, debts for most student loans, fines, penalties or restitution obligations, debts that are notlisted properly by the debtor
The time span of Chapter 7:
The Petition
The first thing that happens is a petition is filed with the bankruptcy court. Once you submit a petition request for bankruptcy the courts order a "Meeting of Creditors" or a "341 meeting". This is usually 60 days after the petition has been filed and you're required to be at that meeting.
Meeting of Creditors
As stated above, you are REQUIRED to be at that meeting. You'll sit before a Trustee of the Court (a judge), you and any creditors, or the creditors attorney's who feel they have reason to stop the discharge. You'll be the only one under oath while the judge and creditors' representatives ask you questions.
Sounds scary don't it. Going into the 341 meeting I had this image of a stern court judge and five pitbull attorneys tearing me apart. As it turns out the judge, she was really nice and get this, NO CREDITORS SHOWED UP.
This still doesn't discharge your debts, whether creditors show up or not they still have 45 days from the 341 meeting to appeal to the courts. In this time you may be asked for more documents showing proof of your financial status. Bank statements, more check stubs, last years tax returns.
If all goes well, in around 60 days after the meeting of creditors, you'll receive your discharge papers in the mail. Discharging you from your debt.
Naturally every case is different, and conclusions and outcomes may vary. But that's pretty much what happened in my case. Basically a petition was filed along with documentation of my complete financial status. 60 days later a Meeting of creditors. 60 days after that complete and total discharge of all my debts.
How a Chapter 7 Bankruptcy Saved Me