Our Bankruptcy Lawyer Explains the Process
Are you struggling to get out of debt? Are you worried about losing your home because you have fallen behind with your mortgage? If so, you may want to consider filing for Chapter 7 bankruptcy. It is important to understand the process, as well as Chapter 7 eligibility. Take advantage of the free consultation that our bankruptcy lawyer offers to discuss your options in Washington DC and in Maryland.
Filing a Bankruptcy Petition
In a Chapter 7 bankruptcy case, a debtor must first file a petition with the bankruptcy court in the jurisdiction where that debtor resides, or has resided for the greater part of the last 180 days. If the debtor is a business entity, the petition must be filed in the jurisdiction where the business is organized or has its principal place of business. The petition must include the following information:
- List of all creditors and the amount of debt due to each creditor
- The source and amount of the debtor’s income
- List of all the debtor’s property (both real property and personal assets)
- List of all monthly living expenses, including food, clothing, shelter, utilities, taxes, and medical expenses
In addition to the bankruptcy petition, debtors must also file the following documents with the court:
- A schedule of assets and liabilities
- A schedule of current income and expenditures
- A statement of financial affairs
- A schedule of executory contracts and unexpired leases
Individuals with consumer debts must also file documents relating to their current credit situation, including:
- Certificate of credit counseling
- Copy of any debt repayment plan developed
- Evidence of payment from employers
- Statement of monthly net income
- Record of any interest the debtor has in federal or state qualified education and tuition accounts
Filing the petition triggers an automatic stay or the termination of most debt collection actions against the debtor during bankruptcy proceedings.
Do not wait too long to file bankruptcy, because, in the long run, it can hurt you. If you wait too long to file for bankruptcy, you may have your wages garnished or you may drain all of your exemptible assets, such as savings, 401 Ks and other pensions. In addition, you may face the possibility of losing your home and/or vehicle if you wait too long. If you did wait too long and have a foreclosure or repossession on your credit report, in addition to a bankruptcy, it may have adversely affected your credit score.
Let Our Lawyer Explain How to File Chapter 7 Bankruptcy
While the Chapter 7 bankruptcy process may seem like a fairly simple process, it can actually be very complex and time-consuming. It is important to consult with a skilled Maryland and Washington DC Chapter 7 attorney on all matters relating to your bankruptcy case, including all of the details on all of the paperwork that you must present. Our law firm offers a free consultation to discuss your family’s financial situation; call us now at (202) 888-8454.
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