In this article, you can discover:
- The role of an attorney in Chapter 7 bankruptcy.
- Why filing for Chapter 7 bankruptcy does not necessarily mean losing all assets.
- When the best time to file for Chapter 7 is.
- How reaffirmation agreements can allow you to retain possession of an asset.
What Is The Role Of An Attorney During Chapter 7 Bankruptcy?
The role of an attorney in a Chapter 7 bankruptcy case includes meeting with clients, collecting information, and assessing whether you qualify for a Chapter 7 or a Chapter 13 bankruptcy.
The attorney will then prepare the petition, guide the client through the bankruptcy process, prepare them for court, and handle any necessary documents to reaffirm debts or avoid liens. In addition to this, the attorney will also review all creditors and ensure that all debts that should be discharged are.
If I Decide To File For A Chapter 7 Bankruptcy, Do I Lose Everything?
Filing for Chapter 7 bankruptcy does not necessarily mean losing all of one's assets. The purpose of filing for bankruptcy is to get rid of debt while also retaining assets. In some cases, individuals may choose to give up assets such as a car that is not worth continuing to pay for, but generally, the goal is to get rid of debt while keeping assets.
When Is The Best Time To File Under A Chapter 7? How Much Debt Should I Be In To Consider Moving To A Chapter 7?
The best time to file for Chapter 7 bankruptcy is before a garnishment, lawsuit, or falling too far behind on car payments that may result in repossession.
In terms of debt, it is recommended to consider Chapter 7 when the debt exceeds the ability to maintain household expenses and repay the debt. Chapter 7 bankruptcy can help alleviate the burden and put the individual back on stable financial ground.
Do I Have To Go To Court For A Chapter 7 Case?
Due to the ongoing COVID-19 pandemic, court proceedings are currently being held remotely rather than in-person at a downtown location. While it is possible to participate in the hearing via phone, it is recommended that clients meet with their attorneys in person and participate in the hearing together.
This ensures that the client has legal representation present during the questioning by the Chapter 7 trustee, which is used to confirm the accuracy of the information provided in the bankruptcy petition.
Prior to the hearing, the client will have gone over the questions with their attorney and assistants multiple times to ensure they are prepared. At this point, it is important to remember that the worst is over, and the hearing will typically take less than five minutes to complete.
How Are Creditors With Mortgages And Car Notes Handled In A Chapter 7 Case?
When filing for Chapter 7 bankruptcy, all debts are typically subject to being discharged. However, if the individual wishes to retain certain assets (such as a car or home) that are used as collateral, they may enter into a reaffirmation agreement with the creditor.
This agreement allows the individual to continue making payments and retain possession of the asset. It is common for creditors to provide these agreements, with most being executed without issue.
Will Creditors Stop Calling And Harassing Me Once I File For A Chapter 7 Bankruptcy?
Filing for bankruptcy triggers an automatic stay, as outlined in section 362 of the bankruptcy code, which requires all creditors to immediately stop any attempts at collecting debt.
This process happens quickly, with most creditors receiving electronic notification within 24 hours of the paperwork being filed. As a result, many clients report a significant decrease in collection calls following the filing of bankruptcy.
For more information on Role Of An Attorney In A Chapter 7 Bankruptcy, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (706) 940-0594 today.