Financial decisions are weighty and sometimes difficult to make but doing some digging and research of your own prior to making them, can greatly improve your chances of success. Maybe you were unaware of how unmanageable your debts had become, but you have slowly arrived at the conclusion that putting up with calls from collectors threatening to take away everything you have worked so hard to earn, can no longer be a part of your life. If you have realized filing for bankruptcy is the smartest alternative but have some pending questions about what Chapter 7 bankruptcy in particular, represents, we recommend reaching out to a competent bankruptcy attorney in Tulsa, Oklahoma.
Who Should File Chapter 7 Bankruptcy?
The most important thing to know about Chapter 7 bankruptcy is that it can give you the fresh start you so desperately crave. This kind of bankruptcy is commonly known as liquidation bankruptcy and according to the Internal Revenue Service “it is available to individuals who cannot make regular, monthly, payments toward their debts. “[It] provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent.” Businesses that want to discontinue their operations may also file Chapter 7 bankruptcy.
How Does Chapter 7 Bankruptcy Work?
According to Experian, with chapter 7 bankruptcy, “the court places an automatic temporary stay on your current debts [which] stops creditors from collecting payments, garnishing your wages, foreclosing on your home, repossessing property, evicting you or turning off your utilities.” This option could provide great relief to individuals who find themselves in such dire circumstances, allowing them to preserve their exempt property and not have to relinquish assets such as their home that provide them with invaluable security and stability.
How Do You File for Chapter 7 Bankruptcy?
There are some important basic steps to filing for bankruptcy. The first one is attending counseling within 180 days of filing to have a full understanding of the process and its effects prior to taking any action. The second is filing forms in which you are required to list assets, income, creditors, exemptions and other financial information. To finalize the process, you will provide verification documents to the bankruptcy trustee, have a creditor meeting, attend budget counseling and wait for the discharge notice. The discharge notice indicates whether or not the court has decided to discharge your debts and what it is and isn’t dismissing.
If you are facing foreclosure or other tough circumstances as a result of substantial debt, filing chapter 7 bankruptcy could be the best recourse. For expert advice on this process, reach out to the Henson Law Firm, PLLC.
The Henson Law Firm, PLLC is located at:
601 S. Boulder, Suite 600
Tulsa, OK 74119
*We are a debt relief law firm in Tulsa, Oklahoma.
*We help people file for bankruptcy relief under the Bankruptcy Code.