If you’re overwhelmed with debt, bankruptcy can seem like the only solution. It can help you regain control of your finances and get a fresh start, but it’s important to understand the consequences before filing.
The best Chapter 7 Bankruptcy Attorney in Phoenix Arizona knows the ins and outs of the process and can guide you through it. They’ll know which options are available to you and how to use them to get the most debt relief possible.
A good bankruptcy attorney will also have experience with the different types of debts that can be discharged in Chapter 7. Some of these include credit card balances, recent luxury goods purchases, cash advances and some forms of non-secured personal loans.
Some debts can be kept from being discharged in Chapter 7 if a creditor successfully objects to the bankruptcy filing. This can include any debts that arise from fraud or misconduct.
Your lawyer will also work to keep your property safe from creditors. She can advise you on how to take advantage of local and federal exemptions to prevent the loss of certain assets.
You’ll need to turn over a lot of documents before the first meeting of creditors. This includes your tax returns, paycheck stubs, financial statements and other important paperwork.
It’s important to file all required documents in a timely manner because this can affect the outcome of your bankruptcy. You can avoid delays by following the timelines that are given to you.
After you file your bankruptcy petition, the court will assign you a trustee to oversee your case. This person will meet with you, interview you, and examine your financial records. They’ll ask you questions about your income, expenses and assets to determine if you qualify for Chapter 7.
A trustee will then report back to the court within 10 days. The judge will then make a decision about whether you qualify for Chapter 7 or not.
If you want to know if you qualify for bankruptcy, you can take a free credit counseling course offered by many nonprofit credit counseling agencies. This will give you an idea of your eligibility to file for bankruptcy under Chapter 7.
Once you file for bankruptcy, it may take several months before the actual proceedings begin. This is because you have to attend a creditor’s meeting, where you’ll be interviewed by your trustee and creditors.
In this meeting, your trustee will ask you about any activities that might have affected your financial condition in the past 6 months. This can include things like:
Credit card purchases, large purchases or transfers of property to family members.
Your creditor might object to these transactions in the future and this can cause problems. In the long run, your credit rating can take a hit.
If you’re struggling with debt, it’s best to seek help as soon as possible. The sooner you file for bankruptcy, the better your chances of getting a clean slate and regaining credit.