We will walk you through the process of filing for Chapter 7 bankruptcy and discuss other alternatives if they would be a better solution.
There are many different situations that can leave you in a position in which you are unable to satisfy your debts. Here at Meadows & Aderhold, P.A., we provide legal services and advice related to Chapter 7 Bankruptcy laws that can help you ascertain if this is a potential solution for your situation or if there is another route that would be more applicable.
Chapter 7 bankruptcy is also called a straight or liquidation bankruptcy, as it involves accounting for all your assets and distributing money to any creditors who file proper claims during the proceedings. While many of your assets will need to be liquidated, there are some that are exempt that you can retain. Part of the process is gathering your financial records and making an accounting of your assets so that a court-appointed trustee can review them. During this review, a calculation is completed to see if you do or do not make enough money to pay your financial obligations. This is called a “Means Test”, and if you do not pass it, you will not be approved for Chapter 7 bankruptcy, although Chapter 13 bankruptcy may be a viable alternative.
Another step you will need to take during your Chapter 7 bankruptcy is the completion of a financial management course. This course is designed to give you the tools you need to be financially independent going forward. The expectation is that you’ll learn how to avoid getting into the same position in the future. You will also be required to meet with a credit counselor to see if there are any potential alternatives to filing for bankruptcy.
If you have further questions about how Chapter 7 bankruptcy works and would like to meet with us to discuss if filing for bankruptcy is the best solution for your situation, don’t hesitate to contact us to schedule a consultation.