what to take when going.to a attorney for chapter 7 bankruptcy

Chapter 7 and Chapter 13 bankruptcy

laws require you to take a credit counseling course within 180 days (6 months) before filing a bankruptcy petition. You’ll get a credit counseling certificate that expires in 180 days, and it must be filed within 14 days of filing your bankruptcy petition.

Full Answer

What are the steps in a Chapter 7 bankruptcy case?

Apr 14, 2020 · You can use pay stubs or ask your employer or agency for a statement that includes deductions. Go back at least 60 days before you file your Chapter 7 bankruptcy petition, 6-7 months is preferable. If you weren’t employed, you don’t need pay stubs. But if you had more than one employer, be sure to get pay stubs from each employer.

Will I have to go to court in Chapter 7 bankruptcy?

A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be ...

What type of bankruptcy should I file?

Mar 29, 2022 · It is available to individuals who cannot make regular, monthly, payments toward their debts. Businesses choosing to terminate their enterprises may also file Chapter 7. Chapter 7 provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent. A Chapter 7 Trustee is appointed to convert the debtor ...

What is a Chapter 7 bankruptcy plan of repayment?

All appreciation in value of the home belongs to the Debtor in a Chapter 13 and no one can take your home or any other assets from you in a Chapter 13. So make sure the Chapter 7 is the way to go, before you file. San Jose Chapter 7 Bankruptcy …

How do I prepare for Chapter 7 bankruptcy?

The first step to prepare for bankruptcy is to gather proof of your income. Copies of your tax returns and copies of proof of income for the past six months are required when you file a Chapter 7 case. To prepare for bankruptcy under Chapter 7, you must complete the Chapter 7 Means Test.Sep 3, 2020

What debts Cannot be wiped out by a Chapter 7 bankruptcy?

Let's Summarize. Most consumer debt is dischargeable in bankruptcy. Chapter 7 bankruptcy wipes out medical bills, personal loans, credit card debt, and most other unsecured debt. Debt that is related to some kind of “bad act” like causing someone injury or lying on a credit application can't be wiped out.Oct 20, 2020

Do you lose all assets when you file bankruptcy Chapter 7?

No one loses all of their property when filing for bankruptcy. Find out if you can keep your house, car, and other assets in bankruptcy.

What Cannot be included in a Chapter 7 bankruptcy?

Debts Never Discharged in Bankruptcy Alimony and child support. Certain unpaid taxes, such as tax liens. However, some federal, state, and local taxes may be eligible for discharge if they date back several years. Debts for willful and malicious injury to another person or property.

What can they take during bankruptcies?

Generally, the types of assets that you can keep in a bankruptcy include:personal items and clothing.household furniture, food and equipment in your permanent home.tools necessary to your work.a motor vehicle with a value up to a certain limit, usually an older vehicle qualifies.certain farm property.

Which of the following types of debts would be discharged with Chapter 7 bankruptcy?

Common examples of unsecured consumer debts include medical bills, utility bills, back rent, personal loans, some government benefit overpayments, and credit card charges. These unsecured debts are dischargeable in Chapter 7 bankruptcy.Mar 28, 2019

Do they freeze your bank account when you file Chapter 7?

Do they freeze your bank account when you file Chapter 7? Generally, no. Especially if the full amount in the account is protected by an exemption. Some banks (most notably, Wells Fargo) have an internal policy of freezing bank accounts with a balance over a certain amount once they learn about a bankruptcy filing.Mar 21, 2022

What happens to your bank account when you file Chapter 7?

If you are filing for bankruptcy under Chapter 7, you probably can expect to keep your checking account with a bank. If you owe a debt to the bank, however, the bank may have the right to take some of the funds from your account as a set off for the debt. This might arise if you hold a credit card through the bank.Oct 18, 2021

What property do you lose in Chapter 7?

If you file for Chapter 7 bankruptcy, you may lose your nonexempt belongings, property that has a lien on it and property you offered as collateral for a loan. Examples of exempt property based on current federal limits for an individual include: A homestead exemption of $25,150. Up to $4,000 on a vehicle.Dec 2, 2019

What do you lose if you declare bankruptcy?

Filing Chapter 7 bankruptcy wipes out most types of debt, including credit card debt, medical bills, and personal loans. Your obligation to pay these types of unsecured debt is eliminated when the bankruptcy court grants you a bankruptcy discharge.Dec 12, 2021

Can creditors collect after Chapter 7 is filed?

Once you file for bankruptcy, an automatic stay goes into effect. An automatic stay specifically states that creditors cannot contact you to collect debts after you've filed for bankruptcy. It protects you from harassing phone calls, emails, and letters.Feb 20, 2020

Does bankruptcy clear all debts?

Declaring bankruptcy won't wipe out all debts and some types of debt will survive the bankruptcy. In other words, if you declare yourself bankrupt, you will still be required to pay: court-ordered penalties and fines. child support and maintenance payments.Mar 20, 2019

What happens at the end of Chapter 7 bankruptcy?

At the conclusion of your Chapter 7 bankruptcy you will receive a discharge of debt. A discharge releases you (the debtor) from personal liability for certain dischargeable debts. Some taxes may be dischargeable. Whether a federal tax debt may be discharged depends on the unique facts and circumstances of each case.

How to contact IRS about bankruptcy?

Please note: We cannot provide legal or other advice about your bankruptcy case. If you have questions about filing and paying your federal taxes you can find answers here on our website and in the list of resources on the right side of this page. If you want to speak to someone at the IRS please call: 1 Individuals – 1-800-829-1040 2 Businesses – 1-800-829-4933

What is Chapter 7?

Chapter 7 provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent. A Chapter 7 Trustee is appointed to convert ...

How do I contact the IRS about my taxes?

If you want to speak to someone at the IRS please call: Individuals – 1-800-829-1040. Businesses – 1-800-829-4933.

Can I get my tax refund if I file bankruptcy?

You can receive tax refunds while in bankruptcy. However, refunds may be subject to delay, to turnover requests by the Chapter 7 Trustee, or used to pay down your tax debts. If you believe your refund has been delayed, turned over, or offset against your tax debts you can check on its status by going to our Where’s My Refund tool or by contacting the IRS’ Centralized Insolvency Operations Unit at 1-800-973-0424. The unit is available Monday through Friday from 7:00 a.m. to 10:00 p.m. eastern time.

What do you need to do before bankruptcy can be discharged?

The Bankruptcy Code says that before your bankruptcy can be discharged you need to take certain steps personally to make sure it won’t happen again. Anyone who files for bankruptcy is required to complete two programs:

What happens after Chapter 7 bankruptcy?

Immediately after filing a Chapter 7 bankruptcy, a taxpayer can expect that an automatic stay on all collections efforts and legal proceedings (including foreclosure) will go into effect. This is a legal red light for creditors, collections companies, repossession companies, and other courts. It puts a pause on any efforts to collect on unpaid debts or overdue balances. While the bankruptcy automatic stay is in effect, creditors may not:

What happens after filing Chapter 7?

After filing a Chapter 7 bankruptcy, the court will assign you a case number and a bankruptcy trustee. The bankruptcy trustee’s job is to review your assets and your claimed exemptions and to manage your bankruptcy estate. At the end of the day, the trustee will be the one making sure creditors get their part of whatever disposable assets you have ...

How many times do you have to go to court for bankruptcy?

If you have worked with your attorney to file a Chapter 7 Bankruptcy, you will most likely only have to go to court once. That one time is the Creditor Meeting, also called a Section 341 Meeting. This is a hearing held by the bankruptcy trustee, and is more-or-less an interview with you under oath about your assets, debts, and financial circumstances. You will receive a notice that describes when and where you should attend the hearing. Your bankruptcy attorney or a representative from his firm will be with you the whole time.

Can creditors attend a creditors meeting?

Officially, creditors are also allowed to attend the Creditor Meeting and ask you questions about your debt. However, most of the time, they don’t do so. Instead, your Creditor Meeting will most likely be just you, your attorney, and the trustee.

What happens after a trustee meets with creditors?

After the Creditors Meeting is over, the Trustee will review all the assets in your case. You and your bankruptcy attorney will have already set aside specific property that is legally exempt from sale. This may include your home (up to a certain amount of equity), your vehicle, and your personal items. Once the trustee sets aside those items, he ...

What happens to non-exempt assets in bankruptcy?

If you do have non-exempt assets, these will be sold to satisfy part of your debt to your creditors. This property may be sold at auction to a third party. In some cases, you can also use your exempt finances to pay the cash value of important property, keeping it in the family after the bankruptcy is final.

What information should a bankruptcy attorney look over?

You'll disclose additional information that a bankruptcy attorney will look over carefully, such as your monthly expenses and prior property transactions. Throughout your case, the attorney is always considering whether the bankruptcy trustee —the person responsible for overseeing your matter—will suspect bankruptcy fraud. (Although fraud isn't a problem in most cases, a bankruptcy attorney's job is to steer a client away from problems, and therefore it should be—and usually is—the bankruptcy attorney's first concern.)

What do bankruptcy lawyers do?

You can expect that a bankruptcy lawyer will evaluate your financial situation and assess whether filing for bankruptcy makes sense for you. Specifically, bankruptcy attorneys determine whether you'll be in a better financial position after your filing and if so, help you get through the process smoothly.

What is the right to review fees in bankruptcy?

The bankruptcy law gives judges the right to examine the fees charged by attorneys and order them refunded to the trustee if they are unreasonable. To avoid being flooded with cases requiring a review of fees, some courts have enacted local rules or guidelines setting "presumptively reasonable" or "no-look" fee amounts. These are more common in Chapter 13 cases, but some courts have set amounts that apply to Chapter 7 cases. Different courts use different terms, but the effect is the same. If attorneys charge an amount equal to or less than the presumptively reasonable or no-look fee, the court usually won't initiate a review.

How much does an attorney cost?

Attorneys' fees vary by district and can even vary widely from state to state. Even so, fees ranging from $1200 to $2500 are considered ordinary. But don't be surprised if you find a lawyer to represent you for as low as $700.

What to do if you see a lawyer's advertisement?

If you see advertisements that promise unusually low attorneys' fees for your area, be on alert. The advertisements might be deceptive. The attorney might use an a la carte system to increase the quoted fee depending on the services you need. For example, the attorney might charge you more because you have more than a threshold number of creditors, your debt is over some predetermined limit, or you are filing jointly with your spouse.

How long can you pay off debt in Chapter 13?

An attorney will explain that you can spread out your overdue bills over three to five years in Chapter 13 bankruptcy and that your creditors won't be able to harass you during that time.

What is your marital status?

your marital status. the number of dependent children living in your home. your income (and the income of your spouse, if you're married) where you work. where you've lived for the past two years. whether you've filed taxes for the previous four years (this isn't necessary in every case), and.

How long does it take to file Chapter 7?

Most Chapter 7 cases take from four to six months to complete. It might take longer if any number of things happen, such as: you need to provide more information or documents. the bankruptcy trustee must sell property, or. you're involved in a bankruptcy-related lawsuit.

How long does it take for a Chapter 7 bankruptcy to close?

Most Chapter 7 cases are problem-free and close in approximately four months. The how long it will take your Chapter 7 case to progress through bankruptcy will vary depending on your local court. Here's what you can expect. Filing your paperwork. Your Chapter 7 bankruptcy case begins when you file the bankruptcy paperwork with the court.

How long does it take to get a 341 hearing?

The court will set a date for the one court appearance you'll be required to attend, called the 341 meeting of creditors hearing, between 20 and 40 days after you file, as well. At the hearing, the bankruptcy trustee will place you under oath and ask you a series of routine questions.

How long does it take to get discharged from 341?

You must complete it within 60 days of the first date set for the 341 meeting of creditors. Receiving your discharge.

How long does it take to get a bankruptcy discharge?

Assuming that everything goes according to schedule, you can expect to receive your bankruptcy discharge (the court order that wipes out your debts) about 60 days after your 341 meeting of creditors hearing, plus a few days for mailing.

What does Chapter 7 bankruptcy do?

A Chapter 7 bankruptcy lets you wipe out qualifying debt without paying into a repayment plan. You'll learn whether you qualify by passing the means test. You'll also get to keep the property you'll need to maintain your home and job. Things that you can't protect under your state's exemption statutes get sold.

Can you keep your retirement account in bankruptcy?

If bankruptcy might be inevitable, think twice before using retirement funds to pay bills. Most people can keep their retirement account in bankruptcy.

How long does it take to file for bankruptcy in Chapter 7?

How Long Does It Take To Go Through A Chapter 7 Bankruptcy? Once a case has been filed, it typically takes 30 to 40 days to have a 341 creditors meeting. If everything is acceptable to the trustee at the creditor’s meeting, then the court will issue a discharge 45 days after that meeting.

How to rebuild credit after bankruptcy?

The best way to rebuild credit after a bankruptcy is to get a non-collateralized credit card. If a person can only qualify for a collateralized credit card, then they’ll deposit the sum of the credit limit with the credit card issuer and then use the card like a regular credit card.

How long does bankruptcy stay on record?

A bankruptcy should stay on record for about seven years, but once a client gets a new credit card or a collateralized credit card, the effect of the bankruptcy on their credit report will diminish over time. Of course, this is dependent upon timely payment of the new bills.

What is means test in bankruptcy?

The means test shows the bankruptcy court that you’re eligible for debt relief because your monthly income isn't enough to pay your unsecured debts in a Chapter 13 bankruptcy. Unsecured debt includes credit card debt, medical bills, and personal loans. Not all unsecured debts are dischargeable.

How long does it take to file Chapter 7?

Let’s Summarize. Most Chapter 7 bankruptcy cases take between 4 - 6 months to complete after filing the case with the court. The order erasing eligible debts can be granted as early as 90 days from the date the case was filed. No-asset cases are typically closed a couple of weeks after the discharge date.

Can student loans be discharged?

Student loans are only dischargeable if an undue hardship exists. If you own nonexempt property, the Chapter 7 trustee sells it and uses the funds to pay your creditors. Most people’s belongings are fully protected by the state or federal bankruptcy exemptions. Nothing is sold and no money is paid to creditors.

How long does it take to get a 341 meeting?

341 meeting + 60 days = Deadline for creditors to object to having their debt discharged. Creditor objections are not very common in typical Chapter 7 cases, but they do happen. 341 meeting + 45 days = Deadline to deal with secured debts, like car loans (if you want to keep the car).

Is Chapter 13 bankruptcy better than Chapter 7?

Depending on the type of debt you have, this type of bankruptcy may provide more debt relief than a Chapter 7 filing. It’s always best to speak to a bankruptcy attorney about a Chapter 13 filing, as there are many moving parts in the Chapter 13 bankruptcy process.

Is Chapter 7 bankruptcy right for everyone?

If you’re struggling to make ends meet and just can’t make a dent in your credit card debt, keep learning more about your bankruptcy options. While it’s not right for everyone, Chapter 7 bankruptcy helps thousands of families clean up their credit report and get back on their feet every year.

What is the 341 meeting?

First, the clerk’s office assigns a case number, a judge, and a bankruptcy trustee to the case. Then it schedules the 341 meeting of creditors. The date of the 341 meeting determines a number of important deadlines for the bankruptcy case.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is called “liquidation bankruptcy,” because, in theory, a person’s assets are “liquidated” to pay their unsecured debt. In reality, most people who file Chapter 7 get to keep their house, car and other necessary assets, as long as they stay current on payments.

Chapter 7 Bankruptcy Timeline

The Chapter 7 bankruptcy process has many steps. Your obligation includes gathering information required by the court and the trustee, taking a credit counseling course, paying a filing fee, which sets the court process in motion, attending a “meeting with creditors,” and more. The judge could discharge your debt once all that happens.

Meeting of Creditors

The bankruptcy trustee assigned to you by the court will meet with you, in a 341 hearing, usually referred to as the “meeting of creditors.” While your creditors are invited, they don’t generally attend. The meeting usually takes about 10 minutes and requires much of the same paperwork you used to file for bankruptcy.

What Affects the Chapter 7 Bankruptcy Process?

There are a lot of things that can affect how long Chapter 7 bankruptcy takes, some including court delays in the aftermath of the COVID-19 pandemic. But the biggest factor on how long your Chapter 7 bankruptcy case will take is you.

Speak with a Professional

The U.S. Bankruptcy Court strongly suggests that those filing get an attorney. Court officials, including judges, are barred by law from offering advice to people who’ve filed for bankruptcy. The court does have information and documents available for those doing it themselves, legally called pro se.