There is a lot of information out there on bankruptcy. What can be discharged under chapter 7 and what can't be. Most of the questions I receive are highly technical, and I enjoy them. So, keep asking the questions. This post is on the process for a chapter 7 bankruptcy when you don't have assets to pay off your debts.
The first thing that we do is go over the financial information with our client. We then inform them of the requirements under a chapter 7. We determine, based on the information you provide us is whether you can file a chapter 7. There is a means test which is a baseline of whether you meet the requirements for a chapter 7. Then, we retrieve your credit report. This is incorporated in your bankruptcy schedules, along with all the information you provided us. Once you review the information to make sure we have it correct, we will file it with the Bankruptcy Court. At this point, no creditor can contact you concerning your debts. You must take counseling, and report to us the completion before we file. Once we file, you have to take debtor education and report to us your completion.
When we file your petition, we are given the trustee's name and the date we meet with the Trustee. At the trustee meeting, they will ask you questions concerning your financial condition. Do you plan on inheriting money, is the information you listed correct...?
If the Trustee finds that you don't have assets, he will find that. Then the Bankruptcy Judge will Order that your debts are discharged. If there are assets, the assets will be used to pay off as much of your debts as there are assets.
Finally, the Court will order that your debts are discharged. After this, you no longer are responsible for your debts.
for more questions, please feel free to contact us.
Contact me at Jeff@JeffJacobsonlaw.com for more information