Filing Chapter 7 Bankruptcy

Before filing a Chapter 7 bankruptcy, you should make sure that you are eligible for filing for a Chapter 7 bankruptcy. Sometimes filing a Chapter 7 bankruptcy may not be the best way. You may need to consider filing a Chapter 13 bankruptcy instead. Below are questions and answers about filing a Chapter 7 bankruptcy.

When should I file a Chapter 7 bankruptcy?

Before filing a Chapter 7 bankruptcy, you should decide when is the best time to file the Chapter 7 bankruptcy because you want most of the debts to be discharged. If you can wait to file the Chapter 7 bankruptcy, you may be able to include more debts to be discharged by filing a Chapter 7 bankruptcy.

New bankruptcy laws concerning filing Chapter 7 bankruptcy

Nowadays, when filing a Chapter 7 bankruptcy, you are required to receive credit counseling during the 6 months before filing the Chapter 7 bankruptcy. In some cases, you can receive credit counseling within 30 days of filing the Chapter 7 bankruptcy.

What happens if I don't have the credit counseling before filing a Chapter 7 bankruptcy?

In some cases, you will be allowed to do it 30 days after filing Chapter 7 bankruptcy. However, in most cases, if you cannot provide a proof of having had credit counseling, your Chapter 7 bankruptcy case will be dismissed. Credit counseling requirement is part of the new bankruptcy law.

Where can I get credit counseling before filing Chapter 7 bankruptcy?

You must get credit counseling from a counselor on the approved list of agents. You can ask your district for an approved list. Usually credit counseling services such as CCCS listed on the HUD list are approved. But, before you go for that credit counseling, check with your state.

What do I do after I have completed the credit counseling?

After you have fulfilled the credit counseling requirement, the approved agent will issue you a certificate of compliance which you must file with the court when filing a Chapter 7 bankruptcy. You will also submit the payment plan which you have created with the credit counselor.