So, you’re behind on your bills and struggling to keep up with the demands of creditors and debt-consolidators. Chapter 7 bankruptcy can help you reset your finances and start anew.
It is a debt-relief legal process initiated by an individual or business struggling to pay outstanding debts. Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves selling non-exempt assets to generate funds for creditors.
Given how complex bankruptcy processes are, having a reliable Chapter 7 lawyer by your side can make a world of difference. Here’s how a Chapter 7 lawyer can help:
They Have In-depth Bankruptcy Knowledge
Experienced Chapter 7 lawyers know the ins and outs of the Bankruptcy Code. They will guide you throughout the process, making sure each step complies with regulations.
One of the most important aspects of filing for Chapter 7 is means testing. Mandated by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, it helps determine whether an individual or business is eligible for debt relief.
The means test involves calculating the average income of an individual or business in the last six months, and comparing it with a state median income. If the debtor’s income is below than the state median, they can qualify for Chapter 7. If not, a lawyer would recommend other ways for debt relief.
An experienced Chapter 7 lawyer will streamline the means testing process from start to finish. They will also take care of all the necessary paperwork that might arise.
They Can Handle Creditors
Are you being hounded by constant calls from creditors and debt-consolidators? A Chapter 7 attorney can take this burden off your shoulders.
First off, they make sure all creditors are properly listed on the bankruptcy petition so the court doesn’t miss out on anyone. Once the Chapter 7 petition is filed, your lawyer will leverage the automatic stay to halt all credit efforts. In simple words, you won’t receive any angry messages or harassing phones calls from lenders.
Your Chapter 7 attorney will also attend the official Creditor’s meeting, also known as the 341(a) Hearing. They will advise you on how to respond to questions about your debts and assets. A reliable attorney will also represent you in court and prevent creditors from pursuing any further legal actions.
They Help You Keep Exempt Assets
As mentioned earlier, Chapter 7 bankruptcy involves selling non-exempt assets to generate funds. This means that you can keep assets that are considered exempt under the law. Common examples of non-exempt assets include:
- Motor vehicles, such as a car or bicycle
- Personal property, such as furniture, clothes, or appliances
- Retirement funds
- Public benefits, such as Social Security funds
Exempt assets vary by state. Therefore, it’s important to have a knowledgeable Chapter 7 lawyer by your side.
They Ensure Peace of Mind
Filing for Chapter 7 bankruptcy is emotionally challenging. After facing months of financial difficulties and numerous creditor calls, you take a step towards a new beginning. A reliable bankruptcy attorney will take care of the technicalities, giving you peace of mind.
