The Key Steps To Complete Before Filing For Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a complicated process that works best when you hire an attorney for assistance. Bankruptcy is a legal process people use for debt-relief purposes, and it is not something you want to rush into or through. In fact, here are some key steps you will have to complete before you can even file the paperwork for a Chapter 7 case.

Meet with a Lawyer

You should never make a decision about bankruptcy without first consulting with a lawyer. While it is possible to file without one, it is not recommended. Bankruptcy is not an easy process to go through, and any mistake you make can jeopardize your ability to find relief through it.

Evaluate the Debts You Have

When meeting with a lawyer, he or she will assist you with every step you need to take, and one of the first steps is to evaluate the debts you have. A simple look at your debts will help the lawyer get an idea of where you stand financially and can help him or her make a recommendation about which branch of bankruptcy you should use.

Examine Your Income and Financial Situation

Next, the lawyer will look at your income and other aspects of your financial situation, such as the assets you have. Your income will determine which branch or branches you qualify for, but your assets and debts all play a role in this too. In fact, the lawyer will need to analyze your entire financial situation in order to figure out which route to take.

Reaffirm Debts

If you decide to file for Chapter 7 and have any assets with loans, your lawyer will walk you through the process of reaffirming these debts. Reaffirming debts simply means that you make an agreement with your lenders to keep the assets you have and continue paying on them as you originally agreed.

Complete Credit Counseling

The other step you have to take before completing and filing the paperwork for your bankruptcy case is completing a credit counseling course. There are actually two courses you must take, but the first one is necessary before you file your case. The second one is necessary after the case is filed.  

These are only a handful of the steps you would need to take before you can even file the paperwork for a Chapter 7 case. To begin these steps or to learn more about the process, schedule a visit with a Chapter 7 bankruptcy attorney like David M. Todaro Co., LPA  today.