Chapter 7 Bankruptcy
Chapter 7 bankruptcy is available to individuals and businesses. For individuals, Chapter 7 can provide a fresh start by eliminating debt. For businesses, Chapter 7 is a liquidation that pays creditors to the extent of available assets and then closes the business. Chapter 7 is a good option for consumers who cannot afford to pay back their debts and have property that they can keep.
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 or monthly payments, 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 pay for essential costs like car payments. Often times credit scores can be repaired quickly once debt has been eliminated. Even if rebuilding a credit score takes time, consumers overwhelmed by debt usually have a low credit score to start that is falling as debt to income ratios increase.
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 applies for 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.
From there, the bankruptcy trustee who represents creditors will schedule a creditors' exam to ask the debtor questions under oath related to the debtor's finances. This is commonly referred to as the "341 hearing".
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.
Contact Michigan Attorney Andrew Steiger for free consultation to determine if he can help you file for bankruptcy. Free consultation does not establish attorney-client relationship. Information is confidential and protected by attorney-client privilege.