Using bankruptcy is one solution you can turn to when you need relief from your debt, but you might not know what to expect when using it for the first time. A bankruptcy attorney can help you learn what to expect when filing for bankruptcy, and the first thing they will do is help you choose a branch. If Chapter 7 is the best option for your situation, you might want to know several things before filing. Knowing these things can help you learn what to expect during your case.
You Must Do a Few Things Before Filing
Your bankruptcy attorney will explain the bankruptcy process to you and will tell you what you need to do before filing. You will have two main requirements to complete before filing, and one of these is paying the fees. Filing for Chapter 7 costs money, and most attorneys will not file the paperwork until the client pays the full balance. Secondly, you will need a certificate from a credit counseling firm that proves you completed the first credit counseling course. Once you do these two things, you can file your Chapter 7 documents.
The First Thing You Will Receive Is an Automatic Stay
Once you file, it will only take a few days to receive the notice about your automatic stay. The court issues this stay, and its purpose is to prevent your creditors from harassing you for payment. Your creditors cannot legally ask you for any money after they receive this notification, which means your phone will stop ringing with collection calls.
You Will Attend Court Within One Month
Next, you will attend a court hearing, and this typically occurs within one month of filing. Most people only attend one court hearing for Chapter 7 bankruptcies, and your attorney will also attend the meeting with you.
Your Case Will Close in Around Six Months
Finally, you can expect your case to take around six months before you receive notification that it is finished. It takes the bankruptcy court time to process your case, as they must evaluate all your information. When they finish doing everything, they will send you a notice that they closed your case.
Chapter 7 bankruptcy is faster than Chapter 13, but you will still need a lawyer for help. If you want to file, you can seek help today by contacting a bankruptcy attorney in your town.