Steps Needed to File for Chapter 7 Bankruptcy
Posted on: 26 March 2021
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Filing for Chapter 7 bankruptcy has consequences, but it also has a lot of benefits. Chapter 7 offers debt forgiveness to all qualifying debts, and this is the reason people use it. If you are interested in it, you might wonder about the steps you must complete to file. Here are the main steps you will need to take before filing your case.
Pass the Income Test
You cannot use Chapter 7 unless you meet the legal guidelines, and the income test is the main one you must pass. The income test bases your eligibility on your income amount compared to the average in your state. Your lawyer can perform this test for you, but you must provide accurate figures for it. The figures needed include all your income from the past six months.
Consider Your Options
If you qualify for Chapter 7, your lawyer will evaluate your finances to see if Chapter 7 is the best choice. During this time, your lawyer will all look at other debt relief programs to ensure that Chapter 7 is the right option for you. If so, you can proceed with your case.
Pay the Filing Fees
The next step is paying the fees for your case. Your lawyer will file your case in the court, which requires paying filing fees. Your lawyer will also charge you a fee for the work they do with your case. You will likely have to pay all these fees before filing your case.
Complete the Credit Counseling Class
Next, you must complete a course that teaches you skills you can use for your finances. This course is often called a credit counseling course, and you will need to take two of these classes. You cannot file your case until you take the first one. You will take the second one at a later date.
File the Documents
The next step is filing the documents. Before you can file them, your lawyer will work on preparing them, which takes some time. When complete, you will review all the documents and sign each one. Your lawyer can then submit them to the bankruptcy court to initiate your case.
After completing these steps, you will have a couple more things to do. Your lawyer will help you know what these are, and you must complete them. If you have questions about filing, contact a bankruptcy attorney to learn more about the process.