Bankruptcy – Chapter 7 Debt ReliefDeciding to take bankruptcy action? Before you proceed, take your first step and get a free consultation from Kansas City Accident Injury Attorneys at 816-471-5111. The bankruptcy process can be quite complicated. We understand the intent and purpose of the Bankruptcy Code is to give the debtor new opportunities in life “unhampered by the pressure and discouragement of pre-existing debt.” Our attorneys can help you avoid hidden pitfalls of the bankruptcy process.
Chapter 7 Facts
- You do not file a repayment plan under Chapter 7.
- A bankruptcy trustee liquidates your nonexempt assets to satisfy your creditors.
- Individuals, a corporation, or other entities may file under Chapter 7.
- Individuals may not file for Chapter 7 IF conditions were not met in previous bankruptcy action.
- The discharge of certain debts is only available to individual debtors.
Chapter 7 BenchmarksWe begin the process by filing with the appropriate bankruptcy court on the debtor’s behalf. These include but are not limited to: the petition; statements of assets and liabilities, and current income and expenditures for both single and married couples; financial affairs schedule, and required living expenses; and statement of contracts and active leases. Once the Chapter 7 petition is filed, most collection action against the debtor will be suspended.
On the debtor’s behalf, our firm can provide required tax returns to the assigned trustee, documentation of credit counseling, debt resolution receipts, miscellaneous records required by the applicable bankruptcy court, and filing fees.
Another critical aspect of the Chapter 7 process involves a creditors’ meeting, with the case trustee and a request for further information from the debtor. This enables the identification of discharge of liability and subsequent liquidation of nonexempt assets to satisfy debt. At this point our attorneys can help the eligible debtor convert their Chapter 7 case to other chapters under the Bankruptcy Code including, Chapters 11, 12, or 13.
Regardless of the discharge release, secured creditors in some cases may seize property to satisfy an underlying debt. It is possible to “reaffirm the debt” and our firm can properly guide debtors on this type of decision.
This is just a brief and simplified overview of the Chapter 7 bankruptcy process. It is strongly advised by the court systems that because Chapter 7 discharge is subject to many exceptions, debtors would be wise to seek quality legal counsel.
Are You Considering Filing For Bankruptcy?
If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.