Some people worry that that filing bankruptcy comes with a stigma. The truth is, bankruptcy is an opportunity to take control of your finances and make a fresh start by dealing with your debt. Filing for Chapter 7 bankruptcy is a useful tool because it’s designed for people who are burdened primarily with consumer debt.

In a nutshell you file a Chapter 7 case by submitting a petition in which you disclose all your assets, debts, income and expenses to the court. The documents are reviewed by a series of Trustee’s and at the end of the proceeding, the bankruptcy court issues an order of discharge, and you are no longer liable for applicable debts.  Here are the 5 key things you need to understand:

  • The Chapter 7 Process

Get your stuff together.  You must gather  the relevant information used to prepare a case. This includes information about your assets, debts, income and expenses.

  • Filing The Petition

Immediately upon filing your petition an automatic stay goes into effect.  Under the automatic stay, all creditors must cease efforts to collect on your debts. If you are contacted by a creditor after filing, you should tell the creditor you’ve filed a petition for Chapter 7 bankruptcy.

Once your bankruptcy case has been filed, the court will also set a date for the Meeting of Creditors. The Meeting of Creditors (sometimes called a “341 meeting”) is a public meeting held with you, your creditors and the Chapter 7 Trustee. The purpose of the meeting is to give both the trustee and your creditors an opportunity to question you under oath. You will be sworn in, and the Chapter 7 Trustee will ask you questions regarding your paperwork and its contents.

  • The Goal of Chapter 7 Is to Discharge Your Debts

After the Meeting of Creditors, your creditor and the Trustee are given a period of time to challenge your bankruptcy case.  If no challenge is filed, most people receive their Discharge about 60 days after the completion of the Meeting of Creditors.

  • Life after Bankruptcy

Is there a normal life out there? You might be asking yourself.  I wrote a book about that and yes there is.  At the Utah Bankruptcy Guy we help you find a life after bankruptcy.  We walk with you to a better life.  Call us today and set up a consultation to see if bankruptcy is right for you.

Leave a Comment