What is the Chapter 7 process?

Generally, the chapter 7 process is completed in four to six months. During that time, you’re requesting the U.S. Bankruptcy Courts wipe out most of your unsecured debts. These debts typically include bills for medical services, credit cards, personal loans and other bills in debt collection.

Before the chapter 7 process starts, you must do a couple of things. First, you should make sure you’re eligible to file. You’ll have to use a means test which subtracts your monthly income from your state’s median income for your household size. Once you pass the means test you can continue with the chapter 7process. Next, you must obtain credit counseling and provide the U.S. Bankruptcy Courts a certificate of proof. This certificate should be included with your bankruptcy petition.

After your bankruptcy is filed, you’ll receive hearing date. This meeting, commonly called the meeting of the creditors, is where you, your lawyer and creditors meet with the bankruptcy trustee over your petition. You must attend this meeting although it’s not a requirement for your creditors.

The meeting of the creditors last a few minutes. The bankruptcy trustee looks of your bankruptcy petition and asks you some questions. Generally, the bankruptcy will want to know about how you ended up filing bankruptcy. After the meeting is over, the trustee will agree to confirm or deny your petition. Before your petition is successfully discharged, you must attend credit counseling.

If you’re interested in the chapter 7 bankruptcy, talk with a lawyer.