To determine if bankruptcy would help your financial situation, you should meet with a bankruptcy lawyer. During this visit, he or she can evaluate your case to tell you if this is a good idea or not. The lawyer will also tell you the pros and cons of filing for Chapter 7 bankruptcy, and he or she will help you understand the three main steps of filing for Chapter 7.
Complete a credit counseling course
One thing you must do if you decide to file for Chapter 7 is complete a course in credit counseling. In fact, you will not be able to file until you can prove you took a course in this, and you can prove it through the certificate the credit counseling firm will issue to you once you complete it. Completing this course will help you determine if you should file for bankruptcy, as one of the areas it teaches about is alternatives to bankruptcy as well as consequences of filing for bankruptcy.
Gather your documents and prepare the filing documents
The second step of filing for bankruptcy is gathering the necessary documents needed to complete the bankruptcy application. Your lawyer will use the information you provide from these documents to complete the forms for you, and it is important to turn in any papers the lawyer asks for. This will include your tax returns for at least the last two years, a recent statement from every creditor you owe money to, and pay stubs from the last few months. You may also need to submit bank statements and other types of documents.
Attend a hearing with the bankruptcy trustee
After filing the necessary documents, you will need to complete the third step, which involves going to a hearing to meet with a bankruptcy trustee. During this hearing, the trustee will examine your documents, ask you questions, and verify information. The point is for the trustee to make sure he or she has all the information needed to process your bankruptcy case. After completing this hearing, the trustee will begin working towards issuing you a discharge for your debts.
These are the three main steps required when filing for Chapter 7 bankruptcy; however, there will be a variety of other steps you will also need to take during the process. If you have any types of questions about this branch of bankruptcy or other branches, talk to a lawyer today.