What Should I Do To Prepare For A Chapter 7 Bankruptcy?

Chapter 7 bankruptcy can be an excellent way to wipe out debt, move toward financial stability  and get a fresh start.  

When you decide to file for Chapter 7 bankruptcy its important to take the time to gather all the documentation that can help support your petition.  At Alatsas Law Firm, we provide you with the one on one guidance you need to get this documentation together, to make your bankruptcy filing go as smoothly as possible.

Why is it Important to Prepare to File for Chapter 7 Bankruptcy?

Every kind of bankruptcy works in its own way and Chapter 7 is no exception. In contrast with some other types of bankruptcy which restructure debt but also require a borrower to pay, at minimum, a portion of debts, Chapter 7 instead results in debt being discharged altogether. In order for this to occur, Chapter 7 debtors sometimes face something known as the means test which compares a borrower’s income to the average income in New York. Gathering documents is important because full financial history will be necessary to complete the information required for the means test.

What if the Means Test Isn’t a Requirement for Me?

Even for borrowers who don’t need to go through the means test, it is always essential that any kind of petition submitted before a bankruptcy court has accurate and thorough information. Significantly, intentionally leaving out information about your finances on your bankruptcy disclosures can delay your filing or even result in a dismissal. Further, while obtaining the help of an experienced bankruptcy attorney is almost always helpful, the guidance and advice your attorney can provide is only as accurate as the information provided by you, as the sole person with full knowledge of your financial history.  That is why your active participation is needed.

What Kind of Financial Information Should I Gather?

In order to maximize the chances of your bankruptcy case going smoothly, you should begin gathering:

• An up-to-date copy of your credit report.   At the Alatsas Law Firm, part of our services includes obtaining the most updated credit report so that we can get every creditor you owe money to be discharged in your bankruptcy.

• A list of the names and addresses of the people and entities that are owed.  Most of this information is on the credit report, but sometimes debtors owe money to individuals or other people that have not reported a claim on their credit report.
• Evidence of medical bills, utility bills, tax debts, student loans, and domestic support obligations.
• Information relating to any lawsuits, collections, judgments, or debt.

Is Chapter 7 the Best Option for Your Situation?

If you are struggling under overwhelming debt, the silver lining is that you have options available and you don’t have to figure out what your choices are on your own. During these trying times, you should have the assistance of a knowledgeable attorney who will help you stand up and fight on your behalf for that fresh start you need. As a Brooklyn bankruptcy attorney, we assist borrowers who are looking for a fresh start from their debts. We understand how many factors go into making the decision to pursue personal bankruptcy, and we are here to support you every step of the way once you decide that doing so is your best option.  Schedule your free consultation today.