Most people who file Chapter 7 bankruptcy have little assets and qualify to have most of their unsecured debt discharged. Unsecured debt that may qualify to be wiped off or discharged includes medical bills and credit cards . Having little assets and qualifying debt can help make the process a lot easier. Keep in mind, there are specific qualifications that should be met in order to complete your bankruptcy case successfully.
In the beginning, you'll share concerns and discuss your situation with your bankruptcy attorney who will review legal issues and solutions for your finances. You'll present necessary documentation to have a petition created for your case. Credit counseling is required to be completed upon filing but if you have not completed it, a legal expert can recommend an approved agency for you to begin the counseling.
When your bankruptcy petition is completed, you'll review and sign off on the documents so they can be filed with the bankruptcy court. Take time to review these documents carefully to ensure information is true and correct. The fee to file bankruptcy may be collected at this time.
When your case is filed, your creditors are notified about the proceeding and about a month or so after they are notified, a meeting is scheduled with the creditors and Trustee. Creditors often don't attend but you will be asked questions about your finances under oath. The Trustee then creates a report that details their findings about your situation after the meeting. Creditors have about 60 days to object although this is rare. If no objection is made, your case may conclude in getting your debts discharged.
After your case has been filed, you'll be required to complete a financial management course in order to receive a discharge of your debts.