When you fill out Chapter 7 bankruptcy forms, you are applying for what is known as a “straight bankruptcy” or “liquidation bankruptcy.” Unlike Chapter 13 bankruptcy, you will not be asked to adhere to a repayment schedule. All of your debts (except for student loans, court judgments, alimony/child support and IRS debts) will be discharged and you will no longer owe these creditors. However, there are some disadvantages to this way out. For one, your personal belongings may be sold off by a court-appointed trustee to cover some of what you owe. Additionally, this record will remain on your credit history file for 10 years.
Once you’ve filled out the Chapter 7 bankruptcy forms and received the order of relief, a court clerk will send official notices to your creditors and will set up a meeting to allow your creditors to question you about your debts. You’ll meet with a trustee and the people you owe money to, usually within 30 days of filing. Many people like to have the help of a legal professional during this time. In most cases, there are no objections, but sometimes creditors may have some evidence that you applied for credit under a false pseudonym with intent to deceive, that you borrowed money knowing you could never pay it back or that you’re hiding assets to get out of your financial responsibilities. In this case, the creditors may file a proof of claim against you within 60 days of the meeting. If no objections are raised, then you’ll receive a discharge after the 60 day period.
If you’re worried about losing assets after filling out Chapter 7 bankruptcy forms, then you may want to consider Chapter 13 bankruptcy forms instead. The primary benefit of choosing Chapter 13 over 7 is that this type offers you the opportunity to stop your home from foreclosing. While you will still have to make payments on your home, the bankruptcy gives you the ability to catch up on missed payments without court proceedings. The other benefit of Chapter 13 is that you can reschedule other secured debts and lower monthly payments. A Chapter 13 filing is similar to a consolidation loan, where the debtor pays a trustee, rather than the original creditors, which may be a relief if the creditor calls have gotten nasty. Also, filing Chapter 13 will protect any co-signors from sharing your financial ruin. If you’re unsure if you qualify, then you may want to speak with a legal professional about your case. Many attorneys offer free initial consultations.
There are some costs associated with Chapter 7 bankruptcy forms. If you decide to use a legal forms kit, then you will probably pay $40 to $160, which will require that you fill out everything yourself. If you need a little extra guidance, bankruptcy software with fill-in-the-blank forms can be purchased for around $50. If you’re really in the dark about the whole process, you may wish to obtain legal guidance from an attorney, which will cost from $500 to $1,500 on average.
You must log in to post a comment.