It is really unfortunate when individuals have to file for bankruptcy to tackle the disastrous financial conditions they go through. While filing for bankruptcy, it is either the Chapter 7 or the Chapter 13 bankruptcy that they go through. But there are certain financial requirements which must be met before qualifying to file, and only the expert Chapter 7 Bankruptcy attorneys can guide you through this entire process. And if these requirements are not met, then automatically the individual has to file for the Chapter 13.
One will ideally be not allowed to file under the Chapter 7 if:
- The income of the individual is above the median income for the people in that particular state.
- The individual has enough cash reserve to pay off 25 percent of the debt over a minimum period of three and five years.
There are certain procedures involved in filing and it is the Court that determines to depend on the Form that needs to be filled. These forms can even be downloaded online, and also the attorneys specialized in it can provide you with the form and other paperwork needed. Even there is a fee structure which needs to be paid, and for those who do not have the financial stability to pay the fees, the Court gives them the opportunity to pay them in installments.
While filing the bankruptcy petition there is certain information that needs to be provided in the documents. They are:
- The list of assets held
- The entire list of liabilities
- The detailed information about the latest income and expenditures
- All the financial affairs held and also a statement mentioning all of them
- The tax filing documents of the recent year
- Credit counseling certificate owned if any
- The list of properties that are to be exempted, and so on.
One needs to clearly understand that by applying for the Chapter 7 Bankruptcy, the individual is actually turning over all the non-exempted property to the bankruptcy court, and any kind of transaction regarding this entire list of properties is strictly prohibited until the debts are being completely cleared. The court generally appoints a trustee who keeps a close watch over the entire case and he starts the process with the verification of all the documents that have been submitted to the court.
Having a Chapter 7 Bankruptcy attorneys can actually turn some of the tables in your favor because the legal complications involved in the entire process might not be realized by people at large. It has been seen that in most of the cases, there aren’t much of properties found that stays as non-exempted, and the creditors are ensured that most of their payments are cleared. However, the laws keep evolving with time, and as days pass there are some constant inputs which make the presence of the Chapter 7 Bankruptcy attorneys must. Talk it out with the local law firms who have the reputation of delivering the best service in such cases, and make sure you are represented wisely in front of the law.