Personal Bankruptcy

Why file bankruptcy?

An individual files for bankruptcy to obtain debt relief. Types of common debts for which relief is available include  credit cards and various types of loans. Other debts for which relief may be available include judgments and wage garnishments.

Before seeking debt relief through bankruptcy, individuals should assess what debts can be discharged. Individuals in bankruptcy have a goal to discharge debts, but not all debts may be discharged. Some examples of non-dischargeable debts include unpaid taxes or domestic support obligations.

What is a Chapter 7 Bankruptcy?

A Chapter 7 Bankruptcy is one of the most common forms of debt relief available to most individuals. Upon successful completion of a chapter 7 bankruptcy, it amounts to a discharge of most debts (such as credit card debts, medical bills, and other common forms of debt). Some debts are, as a general rule, not dischargeable; such as student loans, taxes, and various forms of spousal and child support.

What is the process involved?

Prior to filing bankruptcy, a debtor (the individual filing) must make or prepare for filing a series of schedules, certificates, and other documentation.  Schedules include matters such as listing all various types of property owned or held by the debtor, types of income, and types of debts. Certificates include a proof of completion on a creditor class and a debtor education course. Other documentation generally includes bank statements, title to property owned, pay advises from employer, and previously filed tax returns. Most of the time and work involved in filing bankruptcy occurs prior to actually filing the petition for relief.

When ready, a petition for bankruptcy is then filed by the debtor. This starts the formal process where documents including the petition, schedules, and certificates filed are checked for completeness, notice being sent to creditors, and setting a meeting of creditors.

At the meeting of creditors, the debtor is examined under oath as to the accuracy and completeness of what has been filed. The debtor is also examined under oath as to any specific matters which may relate to what has been filed or other matters related to the filing of the petition. Generally, this process takes about 5 to 10 minutes, and those present include the debtor, any attorney of the debtor, and a bankruptcy trustee. As the name tends to suggest, a creditor can appear at the creditor meeting; but the vast majority of times none are present.

Upon successful completion of these and other requirements as stated above, a debtor usually obtains what is known as an order of discharge, which is a signed order by the bankruptcy judge discharging all dischargeable debt.

Bankruptcy Disclosure: Services or benefits with respect to bankruptcy relief are provided pursuant to Title 11 of the United States Code. This firm is a debt relief agency that can help individuals file for relief under this Bankruptcy Code.

Attorney-Client Disclosure: Any statements on this website are for informational purposes, and are not to be used for legal advice. An attorney-client relationship is not created by viewing this website.