Find out if you qualify for chapter seven bankruptcy with these simple steps
1. Ask Yourself if Bankruptcy is the Right Option For You. You must meet several criteria to file for chapter 7 bankruptcy, if you have enough income to pay your debts you won’t be eligible to file chapter 7 and you would have to file chapter 13 (debt consolidation) instead
2. Consult with an bankruptcy attorney in Burbank, CA. To file for bankruptcy it is always best to consult with an attorney first. The attorney will help you determine if bankruptcy is the right choice for you. Don’t forget that bankruptcy should be considered your last option.
3. Credit counseling. You need to complete the mandatory credit counseling, if you file without it the court will dismiss your case. Here is a list of Bankruptcy Trustee approved agencies http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm
4. Other forms. In addition to the petition you will also need to complete other forms including a schedule of assets and liabilities, current income and expenditures, all debts to be included in the bankruptcy, executory contracts and unexpired leases, a schedule of exempt assets and a federal form called a “means test”. You can click here to find the forms http://www.uscourts.gov/FormsAndFees/Forms/BankruptcyForms.aspx
5. Bankruptcy Court. As a debtor you must file a petition with the bankruptcy court near the area where you live or where you have most of your assets. Once the petition is filed most of the legal actions are stayed and most of your creditors won’t be able to start or continue lawsuits against you.
6. Provide your bankruptcy trustee with copy of your pay check stubs and your recent tax return at least 7 days before your creditors meeting.
7. Creditors meeting. A meeting with your creditors takes place 20 to 40 days after the petition is signed. You must attend this meeting and the people you owe can ask you questions regarding your financial status and your properties.
8. Financial Management Instruction course. You will need to complete this course only after your case is being filed and within 45 days of your creditors meeting. This course will cost you about $30 and you can find Trustee approved providers here http://www.justice.gov/ust/eo/bapcpa/ccde/de_approved.htm If you fail to complete this course your case can be dismissed. Remember to submit the certificate of completion as instructed to you in your correspondence.
9. Your debts are discharged. Wait for your final correspondence in which you will be notified that your debts are discharged. It should take minimum 61 days after your meeting with your creditors.