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Chapter 7 Bankruptcy Forms—and other Information
Are you one of the millions of people in this country who is out of work due to the continuing economic recession? Do you have bills piling up with no way to pay them, and creditors calling you day and night requesting, even demanding that you make your payments? The sudden inability to pay what you owe can be unnerving, even frightening, but there is an option that can help stop these calls and demands and allow you to sleep a bit easier at night: Chapter 7 bankruptcy. In this article we will discuss Chapter 7 bankruptcy in a bit more detail, including the Chapter 7 bankruptcy forms that are typically required in the process.
What Is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy, called so because the law is outlined in Chapter 7 of the federal bankruptcy Code, is a process through which a judge or trustee can cancel many or all of your unsecured debts. In some cases, the trustee will also require you to sell or liquidate some of your personal property to pay your creditors, but you can usually keep your house and other large items you’ve accumulated.
The entire bankruptcy process will generally last 4-6 months once you file your petition, during which time you’ll be required to meet with a qualified credit counselor and appear in court at least once to face the judge or trustee in your case. Currently, the filing fee for a Chapter 7 bankruptcy is $299, however lower wage earners can petition the court to have those fees waived if they cannot reasonably afford them.
To qualify to file for Chapter 7 bankruptcy you must not have filed for bankruptcy within the last 6-8 years. Additionally, if your income level or personal worth indicates that you could qualify for a Chapter 13 bankruptcy instead—a reorganization of debt—you will be prohibited from filing under the Chapter 7 code.
Chapter 7 Bankruptcy Forms
To officially file for Chapter 7 bankruptcy you will be required to fill out a number of different Chapter 7 bankruptcy forms and submit them to the federal court in your jurisdiction. Some of these forms include:
• Property. The property document is a complete list of all the property you own, including property for which you still owe. This includes your house, automobiles, and any items with a value of $250-$500 depending on the jurisdiction.
• Income and Debts. The court requires a written record of your monthly income, and each of your monthly expenses.
• Debts. Each of your creditors must be listed, including the total amount owed to each of them.
• Exemptions. Chapter 7 bankruptcy law allows you to exempt certain property when you file. This is why most people who file for Chapter 7 bankruptcy do not have to give up their home to pay their creditors.
There are of course, other Chapter 7 bankruptcy forms, but these are the most prominent, and the ones that will have to be directly completed by you and your spouse. Some of the other forms required will usually be handled by your attorney or the trustee that hears your bankruptcy case.