Chapter 7 bankruptcy is a process in which an individual petitions the court to discharge all of their debts. Many people opt for this form of bankruptcy because Chapter 7 is an excellent way to get rid of excessive credit card debt and can help with medical debt. The individual may have secured debt and unsecured debt and how each of these is handled can vary from case-to-case. An individual seeking protection under chapter 7 of the United States Bankruptcy Code may have to relinquish a portion of their personal goods in order to satisfy some of the debts owed to the creditors.
In 2005 the United States Bankruptcy Code was changed requiring that individuals qualify to file for a chapter 7 bankruptcy. In order to determine whether or not you qualify to file for a chapter 7 bankruptcy you should first take the Means Test. If the Means Test shows that you meet the qualifying factors to file for chapter 7 bankruptcy then it is important to know that there are other requirements. All individuals filing for chapter 7 bankruptcy must attend a debt counseling course within six months of filing for chapter 7 bankruptcy protection. In addition you will also be required to complete a financial education course prior to discharge of your debts.
While an attorney is not a requirement to file for bankruptcy it is definitely a good idea. The bankruptcy paperwork can be daunting depending on the amount of debt and assets that you have. You will also have to appear before a bankruptcy judge and it can help to have an attorney there with you should extenuating circumstances arise. Once you have located an attorney, filled out all of the appropriate paperwork, and filed your petition for chapter 7 bankruptcy all collection actions must cease and desist. While this might be a stressful time for you, you will not have the added stress of continued collection calls.
