Filing of a bankruptcy case can be very emotionally difficult. There are many rules and procedures that have to be followed in order to eliminate the debts that the person filing for bankruptcy wants to have eliminated through a Chapter 7 Bankruptcy. The first key step is that each person that wishes to file for bankruptcy must complete a Credit Counseling course. There are many options for this course, including online options. However, this course must be completed before the filing of the bankruptcy. The certificate showing that the individual has completed the course must also be filed with the court.
After all the papers (usually at least 50 pages) are filed with the Bankruptcy Court, approximately thirty (30) days later the individual, now known as the debtor, meets with a court-appointed Trustee. This Trustee reviews the paperwork submitted and looks to see if there are any assets available to creditors. If there are none, the Trustee lets the Bankruptcy Court know that there are no such assets, and the case proceeds further to discharge. If there are assets that are available, the trustee will require a turnover of such assets.
From the time the Bankruptcy case is filed, and before it is closed, the debtor (individual who filed the case) must complete another course. This course is call a Debtor Education class. Another certificate must be filed with the Bankruptcy Court. Again, this course is generally done online.
After about three (3) months from the initial filing, the Chapter 7 case will be complete with the debtor receiving a discharge of all dischargeable debts. Some debts are not eliminated through the bankruptcy process (some taxes, domestic support claims, student loans, and others).
Should you have additional questions on Chapter 7 Bankruptcy, please contact the Henshaw Law Office today.