Chapter 7 Bankruptcy
A Chapter 7 bankruptcy is available to individuals and businesses. For individuals, Chapter 7 generally provides a fresh start by eliminating debts and allowing the debtor to keep certain property. For businesses, Chapter 7 is a liquidation that pays creditors to the extent of available assets and wrap up the business. Chapter 7 is a good option when the debtor does not need or want to continue owning assets.
For individual debtors, many considerations must be taken into account when weighing whether to file for bankruptcy and what bankruptcy chapter to file under (generally chapter 7 vs. 13). For debtors who see a continuous increase in their debts, fear losing their car and their job as a result or struggle to choose which creditor to pay each month, bankruptcy may provide the relief necessary to preserve your car and job. Often times credit scores can be repaired quickly once debt has been eliminated.
What is the Process for Filing a Chapter 7 Bankruptcy?
Individuals must complete a credit counseling course within 180 days of filing for bankruptcy and include the certificate of completion with your filing. Upon filing, a $335 fee is due unless the debtor applies for a waiver or installment payments. The voluntary petition form is due at the time of filing to start the process and obtain an automatic stay of relief. Additional schedules and statements are due either within 7 days or 14 days of the filing date.
Call Steiger Tax Law for a Free Consultation
For more information about filing for personal or business Chapter 7 bankruptcy, contact Michigan attorney Andrew Steiger at (248) 259-6367 or firstname.lastname@example.org. Attorney Steiger can discuss your options and walk you through the filing procedures and timeline for a bankruptcy filing.