The phone rings for the tenth time today.  It goes unanswered.  Creditors are calling.  There is absolutely not a dime to send them. What is the next step? What will make this nightmare end?  Chapter 7 bankruptcy might be the answer.  After loans have been consolidated, credit counseling obtained without any luck it might be time to review the facts with an attorney and get financials under control and in order.

Chapter 7 bankruptcy becomes a best fit option when credit card minimums start to become impossible to make, creditors are calling and debt collectors have started the cycle of harassment. When filing Chapter 7 bankruptcy the court orders an automatic stay which prohibits creditors from pursuing the debt any further.  The order of relief is needed in order to prohibit further collections from happening.

Chapter 7 bankruptcy takes a look at all debt and assets.  Trustees sell all nonexempt assets; this could possibly include homes, cars and large dollar item possessions and distributes the money amongst debtors.  It is possible that some assets will fall under a category known as exempt property.  Some homes that don’t have any equity and vehicles often fall into this category.

The Chapter 7 bankruptcy process is one that is fairly straight forward and simple.  The process starts out with a gathering of information.  This information includes the name and an address of people money is owed to, how much is owed along with information regarding incoming funds and monthly expenses.  Of course paperwork is involved and will need to be filled out and filed; this is often referred to as a petition or case file.  Then the paperwork will need to be filed in federal court.  An automatic stay is then issued by the federal court and all creditors must stop pursuing debt.

Then about twenty to forty days later the court will send notice of a 341 meeting which is attended for creditors to be able to dispute and question the claim.  Many times this process takes about ten to fifteen minutes to finish as creditors don’t usually stake claim unless at least fifty cents on the dollar can be recouped.  This is usually not the case in bankruptcy cases. After this is done the court will then accept the petition and sell of nonexempt assets to creditors and the debt will be wiped away in the form of a discharge sixty to ninety days later.  The next step is to rebuild a financial life to be proud of.

Filing for Chapter 7 bankruptcy is not a free service.  It is necessary to pay the fees involved in court expenses. There are case filing fees, miscellaneous expenses and trustee surcharges.  Although Chapter 7 bankruptcy can be filed on one’s own it is preferable to have an attorney represent the case.  This will prevent any mistakes from happening and to ensure all bases have been covered.  When dealing with a court of law and a fruitful financial future it is best to hire a profession bankruptcy attorney.