Chapter 7 Bankruptcy: What to Expect
A Chapter 7 Bankruptcy refers to a specific type of bankruptcy that debtors can pursue to receive a discharge of their debts and receive a fresh start. Chapter 7 refers to the section of the Bankruptcy Code that governs this type of bankruptcy. To ensure that you receive the full benefit of the bankruptcy process, you should contact our Henrico VA bankruptcy lawyers at Canfield Wells LLP.
What happens in a Chapter 7 Bankruptcy?
To pursue a bankruptcy, you must file several documents with the bankruptcy court. This includes a petition and schedule of debts. The schedules must identify any and all of the debts you owe and the creditors. You must also submit a schedule that lists your assets.
Under the bankruptcy laws, you are entitled to exempt certain property from being collected in the bankruptcy. This allows you to retain at least some property to assist you in your efforts to start over financially.
The bankruptcy laws prohibit creditors from pursuing collection efforts during the bankruptcy process. This is referred to as the “automatic stay.” This will provide respite from the collection efforts that you may have experienced.
After all of the appropriate documents are submitted and the creditors notified, a bankruptcy trustee will review the case and either approve or reject the plan. The trustee may challenge claimed exemptions or other aspects of the case.
If the bankruptcy is approved by the trustee, then a discharge is ordered, and certain debts are eliminated. Through a bankruptcy discharge, certain creditors may be barred from taking further efforts to collect on the debt.
Why should you work with a bankruptcy attorney?
The Bankruptcy Code is complex and there are specific procedures to be followed. To ensure that you receive the full benefit of a bankruptcy, you should seek out an experienced bankruptcy attorney.
The Henrico VA bankruptcy lawyers at Canfield Wells LLP are experienced and available to assist with your bankruptcy needs. Contact us today.