If you’ve made the decision to declare Chapter 7 bankruptcy, you might be unsure what to expect from the process. You might even have some preconceived notions about the filing process.
There are specific documents you’ll need to submit in bankruptcy court before the judge will officially grant your petition to declare Chapter 7. Read on to learn more about these documents and what happens once your creditors have been repaid.
Your Disclosure Statement
Possibly the most important document you’ll present in court is your disclosure statement. This document contains an inventory of your debts, creditors, assets, liabilities, expenses, and proof of income.
If you are married, you’ll also need to provide the same inventory for your spouse, even if they aren’t declaring bankruptcy. This gives the court a comprehensive look into your overall financial situation.
You should also be prepared to complete credit counseling. Here, you’ll learn good money management practices and see if there is another alternative to repaying your debts other than declaring bankruptcy.
What Happens Once Your Creditors Have Been Repaid?
Once you’re petition is filed, an automatic stay will be issued. When this happens, your creditors will no longer be able to seek payment of the debt—at least until your Chapter 7 bankruptcy declaration has been resolved.
When your assets have been sold and the funds used to repay your creditors, your remaining debts will be discharged, as you’ll have contributed everything you can to repaying your debts. This is why your disclosure statement is so critical, as any creditors not included will still have the opportunity to seek the repayment they’re entitled to.
Get in Touch with a Chapter 7 Bankruptcy Lawyer
If you’re considering a bankruptcy declaration and have questions about the unique details of your case, speak with a qualified Chapter 7 bankruptcy lawyer at Rowdy G. Williams Law Firm for assistance. You can claim your complimentary case review today when you give our firm a call at 1-812-232-7400 or fill out the brief contact form we’ve provided at the bottom of this page.