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The basic steps of a Chapter 7 bankruptcy

On Behalf of | Dec 11, 2018 | Chapter 7 Bankruptcy |

Many Texas residents can attest to the fact that struggling with debt is no picnic. Many households reach the point where they can barely afford the necessities, let alone pay any discretionary bills. At this point, they probably attempted to deal with the overwhelming amount of debt through other means before coming to the conclusion that filing for Chapter 7 bankruptcy would be the best resolution, but the unknown could be intimidating.

Knowing what the basic process entails could make the situation less stressful. The first step is to obtain a bankruptcy counseling certificate by taking a court-approved course no more than 180 days prior to filing. Before filing the petition, it will be necessary to take the means test, which determines whether an individual qualifies to file. If so, then he or she may move on to the next step, which would be to file the petition.

As long as everything is filed appropriately, the next step is to attend what is called the “meeting of creditors.” During this hearing, the trustee will ask questions and any of the filer’s creditors may also appear. He or she will also be under oath. Within 60 days of this meeting, the filer must submit a certificate for the completion of a financial management course.

Finally, the filer receives a discharge of all eligible debts if everything goes according to plan. In order to make sure that it does, it would be a good idea to enlist the help of a Texas Chapter 7 bankruptcy attorney. The outline of the process may make it appear simple, but there is a great deal of paperwork involved, and missing even one document could delay or derail the process.