Chapter 7 in a Nutshell

Before you decide to file for Chapter 7, decide if it’s worth the risk of losing any property you own. It’s going to depend on your state’s Property Exemption Law whether or not your property will be seized after you file.

The reason why Chapter 7 is so popular amongst filers is the fact that it discharges most of your debt and gives you a chance to start anew. As soon as you file, your creditors can no longer contact you about the debt you owe them. This means that for the time being, creditors cannot seize your property or shut off your utilities.

The entire bankruptcy process usually lasts about four to six months. During this time, you are going to be filling out miles and miles of paperwork and providing a lot of documentation. Some of the information you are going to be providing includes:

Any property you own
Your current income and your employer
Current living expenses
Your debts
Any property you sold or gave away in the last two years

You will be appointed a trustee by the court that will examine your property and any exemption claims that you are making. This person will also see to it that all of your creditors get paid. During the filing process, the bankruptcy court will have control of any property you own, but you will control any property or income you obtain after.

At the end of your bankruptcy proceedings, most of your accrued debt will be discharged and you will be free to start over again.

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