Chapter 7-Part 2

Written by jessica Alba

In the first half of this article, you have considered the alternatives to filing bankruptcy. Of course, it is preferable to figure out a way to pay your bills, so that you can keep your stuff, have a car to get a job, and still have a roof over your head. But if chapter 7 bankruptcy is in your future, you also need to know what the court requires, before they will even consider your petition for debt relief. It is very obvious that you will need the services of a lawyer. But, how to you find the right lawyer, approach the meeting with the creditors, pay the court fees, deal with the trustee, and what happens when your debts are discharged.

Your Lawyer

When you file for bankruptcy, there is so much to think about. It is simply too risky for you to try to go to federal bankruptcy court and represent yourself. You need to hire a lawyer. But, you also need to be careful. If the initial consultation is free, it is clear that the lawyer will only make money if you file. In this case, his/her judgment might be clouded against any other debt resolution options. So, it would be a better service to you, if the lawyer asks for a couple hundred dollars at the outset. You want to get fair and honest financial advice, whether you file for chapter 7 or not.Meeting your Creditors

If you are filing bankruptcy, you had better be prepared for the required meeting with your creditors. No, you cannot just quietly file for bankruptcy and your creditors get a notice in the mail that they will never get the money you owe. It does not work that way. Along with your trustee, you will have to answer to these people. They will be allowed to ask you questions in regards to your inability to pay them back. The trustee can also ask you questions, to make sure that nothing has been forgotten or left out. You will definitely have to have a good reason(s) why you are seeking debt relief.

Pull out your Wallet

Even when you file for chapter 7 bankruptcy, everything costs money. You will have to pay for your lawyer and you will also have court costs. Normally, you will have to pay the clerk of court a mandatory $245 case filing fee, a $39 miscellaneous administrative fee, and $15 trustee surcharge.

Of course, everyone understands that if you really need to file bankruptcy, you are not likely to have the money on hand. It is okay. The fees can be divided into installments, to help you with the cost. However, if your income is less than 150% of the poverty level, the fee can be waived. So, do not despair. It can be worked out.

Friend or Foe

Once you have filed for chapter 7 bankruptcy, you will be assigned a trustee. Whether you think he/she is there to help you or the creditor is a matter of opinion. If you are hoping the courts will not discover all of your assets, the trustee will definitely be a foe. But, if you genuinely want to do everything possible to repay some of the debt to your creditors, the trustee can also be your friend.

The trustee is there to help you liquidate your assets. No, you will not like to see your property being sold to pay creditors. But, if you are filing chapter 7, you are already prepared for this to occur. So, why not accept all the help you can get to expedite the process. The trustee is also there to ensure that no personal property that is necessary for living is included in the sale of items. So, whether you think of the trustee as friend or foe, remember he/she is simply doing the job assigned by the court.

The Light at the End of the Tunnel

The bankruptcy process may seem long and arduous. But, there will be a time when you can truly look forward to that fresh start. The eligible debts will be discharged, which means you will no longer be responsible for the payments. But, not all of your debts can be forgiven. If you owe child support, have had a legal judgment against you, student loans, or other things that do not qualify for bankruptcy. Your bankruptcy can also be revoked, if the court finds you have misled them in any way

So, be aware that you cannot get out of all your financial responsibilities. Also understand that the courts are trying to help you, not make matters worse. So get yourself a good bankruptcy lawyer, do what it takes to get through the process, and then you can start looking forward to a brighter future.