When you file for bankruptcy, the court places an automatic stay on all collection action against you. This means that creditors cannot call you, write letters, or garnish your wages and utilities. It also prevents foreclosure and repossession of assets, like vehicles.
Your attorney will work with you to determine whether Chapter 7 is right for you. This will depend on your financial situation and the other debt relief options available to you.
Filing for bankruptcy can give you a fresh start with a discharge of unsecured debts, such as credit card bills, medical bills, payday loans, and other bills that have become unmanageable. However, it can also take a significant hit to your credit rating.
A reputable Chapter 7 Bankruptcy Attorney in Phoenix will help you weigh the pros and cons of bankruptcy, so that you make an informed decision about your finances. They’ll also make sure you are eligible to file and help you navigate the process from start to finish.
You’ll need to fill out a variety of forms and documents that will be reviewed by your bankruptcy trustee. You’ll have to provide recent tax returns and pay stubs, as well as information about your income, expenses, assets, and debt.
It’s important to stay honest with yourself and with the court. If you are not completely truthful about your financial situation, the trustee might view it as a form of fraud and could even file an unfair complaint against you.
Once you have a clear understanding of your financial situation, the bankruptcy trustee will review the information you have provided and hold a 341 Meeting of Creditors to see if you qualify for Chapter 7 protection. If you are approved, you’ll need to complete a debtor education course on how to manage your money in the future and submit a certificate of completion to the court.
Your trustee will then decide which types of debts are dischargeable and which aren’t. This will depend on the specifics of your financial situation, as well as federal laws and state bankruptcy rules.
Generally speaking, most consumer debts can be discharged through Chapter 7 bankruptcy. However, some debts, such as child support and alimony, may not be dischargeable. Some types of taxes can be discharged, and student loans can be discharged under certain circumstances.
If you’re not eligible for Chapter 7 protection, you might be able to file under Chapter 13 instead. This type of bankruptcy allows you to keep your property, pay back some or all of your debts over a three-to-five-year period, and avoid being considered a “non-filing.”
The bankruptcy process can be long and difficult, and it’s important to choose an attorney who understands the law and will fight to protect your rights. A reputable Phoenix Chapter 7 Bankruptcy Attorney will help you navigate the legal process and prepare all of the necessary documents.
They’ll also prepare and argue your case persuasively on your behalf to ensure a positive outcome. It’s best to hire an experienced, well-respected attorney for your case so that you can get a fresh start with a clean slate.