A Chapter 7 Bankruptcy proceeding is often known as a fresh start for individuals.
An individual Chapter 7 Bankruptcy Case allows people to file for bankruptcy and keep property they need to move forward with their life. In most cases an individual, or married couple filing together, will not lose any personal property.
Unsecured debt, including credit card debt, is often wiped out.
Monthly payments for a mortgage or a car must be paid to keep that property. If you are behind in mortgage payments and want to keep your home Chapter 13 might be the better option.
A Chapter 7 allows individuals to move forward with their life, eliminating past debt. Often people ask if a Chapter 7 will ruin their credit. It is part of a credit history, but importantly it makes life manageable now. Bankruptcy resolves a history of bad credit and creates a path towards improved credit. It is up to each and every individual lender to decide who, how, and when they will lend money by credit. When an individual files for bankruptcy they are often prevented from filling again for a considerable time. People who have no debt and no option to file bankruptcy again may be more credit worthy then someone with outstanding credit card debt.
In order to file a Chapter 7 Bankruptcy, the client must complete our information worksheet and review our documentation checklist as a guideline for documents that will be necessary to obtain bankruptcy relief. We assist clients in completing those documents.
Tax filings must be current to file a petition for bankruptcy relief. There are no exceptions to this requirement. If you have not filed tax returns that have come due, you must immediately contact your accountant and move forward in that regard. It’s important to discuss tax liability with Mr. Weinberg as certain taxes can be discharged under Bankruptcy Law.
You also must complete an approved credit counseling course prior to filing for bankruptcy protection. We will provide you a reference for credit counselors. Many of the programs can be completed within an hour online or by telephone. They will send me a certification of completion of the course, and we will note that in your bankruptcy legal documents.
We have an organized, effective system to explain the process and lead you through it in an organized fashion. I look forward to assisting you with your financial difficulties.
Call my office to schedule an informative, helpful consultation so that we can evaluate your options.