Filing for Chapter 7 bankruptcy protection is usually done when all other alternatives prove to be insufficient. This may make the filing seem negative, but it is an option that allows the filer to have a second chance and retain some of their property. Anyone considering this step may wonder what they will experience during the bankruptcy process.
Reveal All Finances
All filers must gather their bills and create a list of their debts, assets and their income. It is illegal to hide assets to protect them or to not list certain debts, like those to friends or family. The attempt to do so could lead to a dismissal of the Chapter 7 Bankruptcy in Fairfield OH. A dismissal prevents the filer from seeking bankruptcy protection again for a period of about six months.
Prove a Need
The compiling of debts and assets helps the attorney to perform a means test on their client. This is a test that determines if the client can pay off their debt. If the client does not pass the means test, they cannot file a Chapter 7 Bankruptcy in Fairfield OH. Their next option is to consider a Chapter 13 filing or some other form of debt negotiation.
Follow Their Instructions
Once the initial paperwork is completed, and creditors are notified, the filer is expected to complete a credit counseling class. The individual must attend the meeting of the creditors to answer questions and to help clear up any misunderstandings or mistakes. After this meeting, the creditors have up to 60 days to file an objection. This could happen if the debtor lied about the number of their debts or committed some other act of fraud related to the case. Purchasing large luxury items immediately prior to bankruptcy or paying for non-dischargeable debt like child support with a credit card could also cause an objection.
The entire bankruptcy process usually takes only a few months to complete. Discuss the case with an attorney to learn more about property exemptions and how bankruptcy affects issues like credit scores, future borrowing, and other concerns. Schedule an appointment as soon as possible if financial problems like a foreclosure or vehicle repossession are imminent.