Filing chapter 7 bankruptcy is a very difficult choice but you may find that it is your only option. This choice is one that you must take very seriously because when you file chapter 7 bankruptcy if carries with it long term effects that may well haunt you for years to come.
If this unfortunate choice arises, you will want to consider a few helpful tips before you file chapter 7 bankruptcy -- tips that might mitigate some of the more negative circumstances of your situation. In fact, by following some of these tips, you may avoid filing chapter 7 bankruptcy altogether.
Here are a few considerations which may help make filing for chapter 7 bankruptcy either avoidable altogether or at least less painful.
Before filing chapter 7 bankruptcy, consult with a qualified bankruptcy attorney to determine whether chapter 7 bankruptcy is your only option.
A bankruptcy attorney will be familiar with the law and your options and may be able to suggest a different course of action which may prove more beneficial and less damaging.
Before you can file chapter 7 bankruptcy, it is essential to complete credit counseling.
While this might mean paying a fee, it is a mandatory step before you can file. Otherwise, your filing will not be allowed to continue.
Be sure that to complete and file all necessary paperwork in court. This paperwork includes your credit counseling certificate.
Make sure all of your paperwork is accurate. Additionally, because you may be required to pay a large fee associated with filing for bankruptcy, you will need to include in your paperwork an application for a fee waiver in your initial petition with the court.
Approximately one month after filing the petition, you will need to meet with your creditors, an arrangement made by the court. During this important meeting, your creditors will question you regarding your finances and property.
Generally this meeting will involve only a few people normally connected with the credit card companies to whom you owe your debt unless you owe a very large amount of money.
It is important to answer their questions, but only answer what they specifically ask and do not offer additional information or speculation. Simply respond honestly to the questions asked and nothing more.
Differing from your credit counseling course, a personal financial management course generally costs about $30 and is necessary for completing your filing of chapter 7 bankruptcy.
If you do not take such a money management course, you risk dismissal of your case. You’ll want to double check and ensure that all necessary steps and considerations are in place so you can have the debt burden removed.
Finally, upon completion of this filing process, your debts will have been lifted and you will be able to start over again. It is important to take advantage of this opportunity to get back on track and rebuild your credit rating.
Avoid making the same mistakes which hurt your credit originally and take positive action so you will never need to file chapter 7 bankruptcy again.
Filing for chapter 7 bankruptcy is no simple matter and not everyone will have it go through. However, if you follow these steps closely, you will have the best chance to have your debt burden released under the rules for filing chapter 7 bankruptcy.