What Can You Expect When You Seek to Permanently Discharge Debts?
When you’re struggling to meet your financial obligations and have concluded that bankruptcy is your best option for moving forward, you may be able to permanently eliminate certain debts, provided you qualify under the Chapter 7 “means test.” Assuming that you are eligible to discharge debts through Chapter 7, what can you expect the process to look like as you seek a fresh start?
Before You File
Even though you’ve submitted to the means test and qualify to file under Chapter 7, you must first complete a mandatory credit counseling course. The class may be taken online or over the phone.
Filing for Bankruptcy under Chapter 7
You must complete the official bankruptcy forms (you may find them online, but your attorney will also have them). You should be thorough, accurately listing all property, income, debts and creditors, as well as any necessary information about financial transactions over the past two years. You will also want to provide the bankruptcy trustee with a copy of your most recent income tax return, as well as any other documents requested by the trustee.
After You File
Approximately 30 days after you file, the trustee will hold a meeting of all your creditors. You must attend, but your attorney can also be there with you. Even though it’s a meeting of creditors, they seldom come. As a general rule, you’ll be placed under oath and asked questions by the trustee.
Within 60 days of the meeting of creditors, you will be required to participate in mandatory budget counseling. This can also be done online or by phone. You must then submit a form to the bankruptcy court confirming completion of counseling. The counseling agency must also provide a certificate of completion.
Eventually, the court will send you a written notice of the discharge of your debts. You will work directly with the trustee to relinquish any property not exempt under state or federal bankruptcy laws (in Texas, it’s rare to lose significant property in a Chapter 7 bankruptcy).
Contact an Experienced Rockwall, TX Bankruptcy Attorney
Learn more about the reasons for reaffirming a debt in bankruptcy. At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.
