Chapter 7 Bankruptcy is the most common type of bankruptcy for individuals. It allows you to erase a majority, if not all, of your unsecured debt. It is sometimes called a liquidation or straight bankruptcy.
The Chapter 7 Process
The first step is to consult with an attorney to discuss whether bankruptcy is the right choice for you. At Boise Bankruptcy Relief we have our clients fill out a questionnaire which details your financial situation and itemizes your personal property. After we receive the questionnaire, we set up an in-person consultation to go over your questionnaire, discuss whether filing for bankruptcy is right for you, and discuss the benefits and consequences of filing. During this process, you may tell your creditors and collection agencies that you are consulting with an attorney regarding filing for bankruptcy. However, it is important to keep in mind that creditors and collection agencies are not barred from contacting you until the bankruptcy petition is filed with the court.
Prior to Filing Your Bankruptcy
Once you have decided to go through with filing, you must complete a credit counseling course. This course may be taken online or over the phone, depending on your situation and the course provider. The credit counseling course is mandatory and must be completed before we may file a bankruptcy petition. You can either choose for us to order the course for you, or you can contact a course provider on your own. The cost of this course is generally around $15 – $20.
Once you have completed the credit counseling course, the third step is finalizing the bankruptcy petition to submit to the bankruptcy court. Most of the information to complete the petition will come from the questionnaire we provide you along with a credit report. The petition consists of itemizing your assets and liabilities into different “Schedules.” Before we file the petition, we go over it with you to make sure we get it right the first time.
After we have submitted the petition to the court, the court will schedule a meeting of the creditors. The meeting of creditors is where we meet with the trustee who will ask you questions under oath regarding your bankruptcy petition and the contents thereof. It is generally held approximately one month from the date that we file the petition, and it generally lasts approximately 15 – 30 minutes depending on your specific questions. You can rest easy that we will prepare you for the meeting and answer any questions you may have regarding the meeting.
Once we have attended the meeting of the creditors, you must complete a second course call the “debtor education course.” As with the credit counseling course, it may be taken online or over the phone. This course is also mandatory and must be completed before the bankruptcy court will grant you a discharge and close your case.
Completing the debtor education course is generally the last step you must take before obtaining the discharge. However, some circumstances my cause your bankruptcy to take longer such as adversary proceedings or creditors filing an objection to the discharge.
Speak with An Attorney
We have the experience to successfully guide you through the bankruptcy process.
We make ourselves available to our clients. We are here when you need us. In order to get the process started, simply give us a call and schedule a free consultation.