Chapter 7 Bankruptcy Attorneys in Metairie
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a chapter that is often referred to as the liquidation chapter. The reason for the alternate name is that those who file may have to pay for or sell some of his or her nonexempt property so that the funding can be distributed to various creditors. However, those who have income levels that are 150% or more below the average state income have a fair chance of having their debts discharged. A discharge is a legal declaration that states you are no longer obligated to pay back a debt to a creditor.
Metairie Debt Relief
The Metairie economy, as well as the national economy, is currently in a state of turmoil, which means that millions of Americans are having debt issues. Debt can quickly become overwhelming debt over the course of only a few months. Bankruptcy can give you the opportunity to obtain a fresh start and get back on the track to financial freedom. There are many options available to those who suffer from debt; Chapter 7 bankruptcy is one of those options.
The Chapter 7 Bankruptcy Process
The first step in the bankruptcy process is contacting a reliable Metairie Chapter 7 bankruptcy lawyer. An established attorney can assist you with the qualification process. Once the debtor passes all necessary tests, the attorney can file a petition for bankruptcy. In addition to the petition for bankruptcy, the debtor’s attorney will need to file asset and liability schedules, income and expenditure declarations, financial affair statements, and unexpired lease schedules. The courts will also want to see copies of the debtor’s tax returns.
The moment an attorney files a petition for bankruptcy, all creditors who are involved in the case must cease debt collection attempts. They must wait until the hearing when the judge will settle the dispute about the unpaid balances.
The case trustee will meet with the creditors to discuss the terms of the bankruptcy within 40 days of the filing date. During the meeting, the debtor will have to answer a series of questions about his or her finances and repayment capabilities. The job of the trustee, in this case, is to evaluate the debtor’s financial situation to see if the debtor is abusing the discharge system.
What to Do Now
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- Click to schedule a free consultation, letting us know what you need.
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