FAQs and Answers About Chapter 7 Bankruptcy

Chapter 7 BankruptcyThe changes made to the bankruptcy law towards the end of 2005 left people with questions about some provisions of the law, Chapter 7 bankruptcy, in particular. Before consulting with your Chapter 7 bankruptcy attorney here in Utah, the following answered FAQs might help shed some light.

What is Chapter 7 Bankruptcy all about?

Chapter 7 covers personal bankruptcy cases. It gives you a new lease on your financial life. The law discharges or excuses a lot of unsecured debts like medical bills and credit card debt. Through your bankruptcy trustee, you can liquidate your assets excluded from the Chapter 7 exemptions in your state.

In reality, liquidation is not a major factor in most Chapter 7 cases. This is because a majority of people who file for bankruptcy have no or insignificant exempt assets.

What does bankruptcy automatic stay mean?

When you file for bankruptcy, bankruptcy automatic stay is among the first guarantees or protections you get. The stay often takes effect after filing the initial bankruptcy paperwork. You have protection from all types of collection, including foreclosure, repossession, lawsuit, and garnishment.

How long will it take me to file bankruptcy under Chapter 7?

Compared to Chapter 13, Chapter 7 is a quicker process. You can get a discharge in about six months. In contrast, it could take several years to complete a repayment plan under Chapter 13. This means you only have a few months to complete the Debtor Education Course required by the new law.

Do I need a bankruptcy lawyer for my case?

While you can file on your own, hiring a Chapter 7 bankruptcy attorney may be more beneficial for you. For one, there are lots of paperwork and documents to prepare and submit. You also need to meet deadlines and follow court orders.

A lawyer knows the complexity of the process and can guide you every step of the way.

Hopefully, the information provided in this post has helped clarify some gray areas about Chapter 7 for you.

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