The Occult Bot

There are two alternatives for filing bankruptcy as a individual, chapter 7 and chapter 13 bankruptcy. Chapter 7 is often called liquidation as all of your property that is not exempt is sold in order to pay off your debts. Exempt property is that property that the bankruptcy court allows you to keep in order to live your life normally, like a automobile, clothes, furniture, etc. Each state has their own bankruptcy exemptions, as well as the Federal bankruptcy exemptions that can be used in some states.In order to legally to file a ch 7 petition, cannot be a business or farm, must be an individual, you must take a credit counseling course from an authorized agency inside the 180 days before filing for ch 7 bankruptcy relief, and pass the means test which is completed with yor petition.In a ch 7 petition, you will have to file schedules that list your debts, assets, income and bills. The bankruptcy court may also request to see tax returns, pay stubs and credit counseling certificate. Bankruptcy filers who are married must provide the spouses data even if they are not going to be filing bankruptcy together so the court can determine your ability to pay the debts.When completing your petition, you will have the option to keep paying and saving your property if you are able to, such as your dwelling or car, by making a reaffirmation agreement with the company that holds the debt. By reaffirming the debt you are recognizing that you intend to make payments. If the trustee approves your reaffirmation agreement, the creditor may be able to repossess the property if you do not pay.When you file your chapter 7 bankruptcy document you will have to pay a filing fee of $299. This fee can be paid in installments, up to 4 no later than 120 days after filing your petition. Once the bankruptcy forms are filed, the bankruptcy stay is in effect, and your creditors cannot try to collect on the debts or continue lawsuits, or wage garnishments. Each of your credit companies will be notified that you have filed bankruptcy and given a chance to answer. Within 20-40 days a 341 meeting will be called. During this meeting, the creditors and trustee can ask you questions.The trustee then rules on the presumption of abuse of your case. If your case is presumed to be abusive you will be given a chance to refile under chapter 13.The trustee then liquidates your assets if any are not exempt and gives the profits to creditors. Once assets are liquidated, if there are any, then the trustee will grant the debtor a bankruptcy discharge which absolves the debtor, you, from owing what is left to your creditors, basically wiping out your debt.

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