Financial problems can occur during any stage of life. These may be due to a change in your current situation, such as divorce or job loss. Regardless of why you may be having difficulty paying your debt, you may want to consider filing for Chapter 7 bankruptcy. Doing so can assist you in having back your peace of mind and getting your bills paid. By knowing specific things about this type of bankruptcy, you may feel motivated to get started.
The last thing you will want to do is to pay a huge amount of money to get rid of your current debt when you are having financial problems. The good news is that the cost of filing for Chapter 7 bankruptcy is only $335, and this will cover the administrative fees and the court costs that must be paid for filing for this status.
In order to qualify for this bankruptcy, you will need to fill out specific forms that are provided by the court in your jurisdiction.
Listed below is some of the information you can expect to provide:
1. The amount of property and other assets you have.
2. The total amount of your annual income.
3. The names of the creditors you owe and how much to each one.
4. The amount of money you pay monthly to live.
When filling out this information, you will want only to provide accurate figures and be sure to have the necessary proof, such as a W-2 or copies of your rent or mortgage checks.
The Automatic Stay
One of the benefits of filing for Chapter 7 bankruptcy includes the automatic stay. This will prevent any creditors from contacting you by phone, letter or email to attempt to receive payment for any debt that is owed.
Additionally, the automatic stay can prevent legal action from being taken against you in order to recover a debt that you own.
Getting your debt discharged by filing for bankruptcy can typically be done within a short amount of time. The estimated time for the completion of this process is three – six months.
One of the benefits of getting rid of the debt you can't pay includes feeling less stressed about your financial situation. Be sure to rely on the expertise of a bankruptcy attorney such as Julie A Philippi Attorney at Law who can assist you with the proper legal guidance of filing for this status.