Filing for Chapter 7 Bankruptcy

 Posted on August 20, 2013 in Chapter 7

When someone files for personal bankruptcy, they typically file for either Chapter 13 bankruptcy or Chapter 7 bankruptcy. Under Chapter 13, a payment plan is set up for the debtor to pay back all of the debts, whereas, under Chapter 7, the debts are forgiven.

When a person files for Chapter 7 bankruptcy, these are some important steps to take early on:

The person in debt (debtor) must file a bankruptcy petition with the court, along with a list of assets and liabilities, a list of income and expenditures, a financial affair statement and a list of all current leases

• Once the petition has been filed, debtors must also have tax documents available to hand over to the case trustee
• If the majority of the debts are consumer debts, the debtor must also file a certificate of credit, a copy of a debt repayment plan from credit counseling if there is one, evidence of payment from employers and any interest in qualified education or tuition accounts

The court then charges the debtor the following fees, which must be paid immediately unless permission is granted otherwise by the court. If these fees are not paid, the case may be dismissed.

• $245 case filing fee
• $46 administrative fee
• $15 trustee surcharge

Information needed to complete all of the necessary forms for the petition, includes:

• A list of all creditors and the amount and nature of the money due to them
• The debtor’s income, including the amount, source, and frequency
• A list of all of the debtor’s properties
• All monthly expenses such as food, shelter, utilities, transportation, medications, taxes and clothing

Determine possible exemptions in the case. States have specific assets that can be exempt from a case, or a debtor can choose what he or she wishes to be exempt from the case. It is important to determine this early on with an attorney.

Although there are many additional steps that must be taken to file for bankruptcy, these are a few that are very important to get the ball rolling. For additional help, contact a San Antonio bankruptcy attorney. Attorney Chance M. McGhee can help you file and get your debts taken care of today.