Chapter 7 bankruptcy is the most popular type of personal bankruptcy. It discharges the most debt without repayment and takes the least amount of time. If you choose between Chapter 7 and Chapter 13, it is usually the better option to choose Chapter 7.
Basic Process
The first thing to do when you are going to file bankruptcy is talking to an attorney. Your attorney will go over your assets and debts and determine your unique situation’s best course of action.
- Before you can file your bankruptcy papers with the court, you must attend an approved credit counseling session. Submitting your certificate of completion along with the schedules listing who your creditors are, how much you owe, and balances due, plus your income and filing fees to the bankruptcy court
- Soon after filing, you and your attorney will attend a meeting of the creditors. This is where you will meet your trustee, and they will ask you questions about your paperwork. Rarely do the creditors attend this informal meeting.
- Before your bankruptcy can be completed, you will need to complete a second credit counseling course.
- After you have completed all the requirements for your bankruptcy, you will receive a discharge, and all of your qualifying debts will be eliminated. Chapter 7 bankruptcy takes between three to six months to complete.
If you are overwhelmed in credit card, medical, or any other unsecured debt, contact a McAllen bankruptcy attorney to find out how you can get your debt eliminated.