Steps To A Successful Chapter 7 Bankruptcy
For those filing for Chapter 7 bankruptcy, it’s good to understand fully what the process entails. Since you are still dealing with the harassment of your creditors, the process can be quite overwhelming. With the proper information on how the process works, you will find that bankruptcy is less intimidating.
One of the keys to a stress-free bankruptcy process is having a good attorney. Cross check your finances with your attorney and identify all your creditors to determine the extent of your debt. Your attorney will tell you what you need to do in order to retain a car or your home if you are still making payments on them. The attorney also helps you identify those debts that can be discharged and the ones that you have to keep.
After identifying your creditors, compile all their names and addresses. You also need to include the exact amounts you owe each one of them. Provide your income and any other relevant information. Look for an appropriate credit course in your area, again your attorney should help you get an approved course. The course is very important since your case cannot be filed unless you have completed one.
After this, you can file your bankruptcy petition. Your attorney will help you include all the relevant documents such as debt documentation and income statements in your petition. You are then required to meet with your creditors, bankruptcy trustee and your attorney for clarifications on why you are filing bankruptcy. This should not be a headache since only a few creditors usually attend this meeting.
Enroll in a financial management course in order to learn how to rebuild your finances. This course will help you avoid being bankrupt again. You are now ready to receive discharge on your debts. Unless there are problems with your creditors, this should happen in a few months after filing for bankruptcy. Receiving a discharge leaves you clear of any obligations except for those loans that were not discharged such as your student loan.
After the bankruptcy process is over you will need to review your credit reports to ensure that all discharged debts reflect so in your credit reports. This will help rebuild your finances. You will need a credit card to help you rebuild your credit rating.
An unsecured low limit card is your best option. If not so you can still get a secured credit card but make sure the company reports on time payments to the credit bureaus. You need to also have some money set aside for emergencies.
Our firm has helped guide many Illinois residents through bankruptcy. Call us from anywhere in the Chicago area at 312-273-1217 to set up a free, no-obligation meeting with an attorney. All of our 7 locations have free parking and night/weekend appointments available. Call today!
By Kerrie Neal