When considering bankruptcy, you must learn that there are different types of bankruptcy you may file depending on your circumstances. For individuals who are under mounting debt and are unable to pay them off, they may opt to file for a Chapter 7 bankruptcy. Non-exempt assets are liquidated and used to pay the debt incurred. Because most unsecured debt will also be discharged in the process, you may gain for yourself a fresh financial start.
The process involved in the filing of Chapter 7 bankruptcy is relatively straightforward.Filling out forms and completing paperwork would be the tasks you most likely would spend a lot of time on.This could prove to be a daunting task for some people which make it essential for them to ask for assistance from a bankruptcy lawyer. You will then be required to take an Arizona means test to qualify to file for a Chapter 7 bankruptcy. Below are some of the steps you would need to go through to file for Chapter 7:
Undergo credit counselling. Six months before filing your petition, you are required to go through credit counselling sessions with an agency that has been approved by the US Trustee’s office. This is mandatory and the court will dismiss your case if you have not met this requirement.
File petition. Forms you may need to fill out include bankruptcy petition, a number of schedules listing financial information, and a form on which you list your income and expenses, indicating that you can pass the means test.
A trustee is appointed. The trustee chosen by the court would then take over. Your non-exempt assets will be taken for distribution to your creditors once they are reviewed and liquidated by the trustee.
Creditors gather for a meeting. Your creditors and trustee might raise some questions you need to answer under oath in this meeting.These meetings are typically short.
Confirmation of your Chapter 7 eligibility. The court will then make a decision on your case after the trustee gathers all pertinent information and documents. If for some reason the court decides against it, you may choose to file for Chapter 13 instead.
Any non-exempt assets are handled. The trustee will go over your property for selling.
Secured debts that cannot be discharged are sorted out. Secured debt which cannot be discharged will either be given back to the creditor, paid for by the debtor or be paid in the future by the debtor through an agreement.
Complete a debtor’s education course for financial management.
Receive the discharge. A bankruptcy discharge will be sent to you by mail within three to six months. The discharge allows the elimination of most of your unsecured debt after which the case will be declared closed.
There are a number of steps that you should be prepared for when filing for Arizona bankruptcy. With an experienced bankruptcy lawyer at your side who would file the bankruptcy for you, you will commit lesser mistakes in the whole filing process giving you the opportunity to have your case approved by the court.
