Chapter 7 Bankruptcy Process
Understanding the Bankruptcy Process
Many people considering bankruptcy find the idea rather intimidating because they don’t know how the process works or what they are getting into. We will be there with you every step of the way and we will do everything we can to make the bankruptcy process go as smoothly as possible.
In order to give you an idea of what you can expect from the time you contact our office, we have provided a brief overview of a typical Chapter 7 bankruptcy proceeding. While other bankruptcy chapters follow different paths, the Chapter 7 process gives you an idea of the process.
The Chapter 7 Process
When you meet with attorney Wright, you will need to bring all the information necessary to complete your bankruptcy forms, including a list of creditors and how much you owe them, information about your income, a list of assets and your living expenses. Attorney Wright will work with you to make sure that the forms are completed correctly and accurately.
Every person filing for Chapter 7 bankruptcy will be required to attend credit counseling and take a means test. A means test compares your income to other wage earners in Arizona and how much disposable income you have. Once these steps are successfully completed, we file your petition for bankruptcy.
Within 40 days after the filing, a creditors meeting is held. This is often referred to as a 341 meeting. At this meeting you are put under oath and the trustee who has been assigned to your case, and any creditors who wish to attend, ask you questions about your financial affairs. Creditors are then given 60 days to file disputes. Your lawyer will be at this meeting but will likely not be actively involved.
During the process, the exempt property you will be allowed to keep is identified. Exempt property consists of critical assets including a home, car, clothing, household goods and other items. The trustee can object to any of the property you have listed as exempt.
At the end of this process you will receive a discharge which releases you from personal liability for any debt that was included in the bankruptcy filing. The case can remain open for up to three years if there are nonexempt assets still available for distribution to creditors.
Contact our Phoenix Chapter 13 bankruptcy lawyer to set up an appointment. Call (602) 648-3274 or send us an email to get started.
We are a debt relief agency. We help individuals and businesses file for bankruptcy relief under the Bankruptcy Code.