Chapter 7 Bankruptcy

If you are wondering what is Chapter 7 bankruptcy, it is known as straight or liquidation bankruptcy, a common form of bankruptcy. It is available to individuals who cannot make regular monthly payments to pay off their debts.

If you are a business owner, you can file for Chapter 7 bankruptcy as well. The purpose of Chapter 7 bankruptcy is to provide debt relief, whether debtors are solvent or insolvent.

Benefits of Chapter 7 Bankruptcy

Here are the advantages of Chapter 7 Bankruptcy you should know about:

Possibility to Get Rid of Unlimited Debt

There is no debt limit, which makes it different from Chapter 13, setting limits on secured and unsecured debt. With Chapter 7 Bankruptcy, you can get rid of most consumer debt, including personal loans, credit cards, medical bills, and other types of debt, whether your debt is hundreds or thousands of hundreds.

You Don’t Have to Deal With Creditors

Since you can discharge your debt completely, you do not have to deal with creditors. They will not bother you because the judge will implement an automatic stay on creditors once the bankruptcy is filed. As a result, creditors cannot bother you anymore by calling you day and night.

You Can Keep Your Home

If you are late with your mortgage payments, you can still stay in your house by filing for Chapter 7 bankruptcy. It does not erase your mortgage debt, but you will be given extra time to manage your finances before a foreclosure filing.

Chapter 7 Bankruptcy is Fast

One of the main advantages of this bankruptcy process is that it is fast. It allows you to become debt-free within 100 days. Unlike Chapter 13, you do not have to repay debt for years. As a result, instead of digging the hole deeper, you have a chance to improve your financial situation.

Court Appearance Might Not Be Required

In most cases, Chapter 7 bankruptcy does not require a meeting with a bankruptcy judge or court appearances. It allows you to save time and makes the entire bankruptcy process less stressful.

How To File Chapter 7 Bankruptcy?

If you are thinking of filing Chapter 7 Bankruptcy, there are certain steps you need to take:

• Attend counseling. The first step is getting counseling from an approved credit counseling agency. You can do it online or over the phone. You must do counseling within days of filing.
• Filing forms.When preparing the forms, you need to list creditors, property, exemptions, recent transactions, and other information regarding your finances. Keep in mind that you will have to pay a filing fee. However, depending on your income, there is an option to request a fee waiver.
• Sending verification documents to your bankruptcy trustee.Your bankruptcy trustee will need to verify your bankruptcy forms, including your tax returns, bank statements, business documents, and paychecks.
• Attending creditor meetings.The purpose of this meeting is to discuss your paperwork and financial situation and answer important questions.
• Attending budget counseling. It is the second meeting with an approved counseling agency. It is also important not to forget to submit the certificate of completion to the court. If you do not submit it, the court may close your case.
• Waiting for a discharge notice. Usually, people receive a discharge notice within 60-75 days after a creditor meeting.

How Can a Chapter 7 Attorney Help?

Managing the bankruptcy process alone is very stressful and complicated, and in most cases, people need legal assistance to make the process smoother and to avoid critical mistakes. A qualified Chapter 7 attorney will determine whether you qualify for Chapter 7, help you ensure that all your debts are accounted for in your filing, and assist you with filing forms.

The mission of a bankruptcy lawyer is to review your financial situation and advise on the best course of action. By working with a lawyer, you may find that you do not even need to file for bankruptcy to receive debt relief.

We Can Be Your Bankruptcy Attorney in Millburn, NJ

Goodgold West & Bennett LLC is a law firm with over 150 years of combined legal experience. Our experienced lawyers specialize in NJ bankruptcy and are ready to help if you file for bankruptcy.

Our law firm counsels our clients on the available options and helps them achieve a fresh start after applying for bankruptcy. If you have any questions or want to schedule the initial consultation with a Millburn bankruptcy attorney, do not hesitate to contact our law firm today.