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What do you need to know about Chapter 7 bankruptcy?

Overwhelming debt can have a detrimental impact on your Georgia family. From dealing with harassing phone calls from creditors to juggling minimum payments, you may feel that you need a way out from your current financial situation. For you, the right way to emerge from your current difficulties may be by filing for bankruptcy. 

For many consumers, Chapter 7 bankruptcy offers an effective way to deal with debt in a timely manner. Before you make the decision to file or make any major decision with long-term implications, you would be wise to first seek a complete understanding of what this type of bankruptcy is and the benefits it could offer you and your family.

What you will need to file for Chapter 7 bankruptcy

Chapter 7 bankruptcy is a popular choice among individuals who have a certain amount of unsecured debt. The process is much more involved than simply filing a bunch of paperwork; there are specific steps to take and a specific order in which you must do them. After filing the initial bankruptcy petition, the debtor will do the following:

  • File a list of all assets and liabilities with the court
  • Submit a schedule of all income and expenditures
  • Write and submit a current statement of financial affairs
  • Submit a list to the court of contracts and unexpired leases

There are also other documents that you may have to prepare and submit to the court or provide to the bankruptcy trustee. These include tax returns and transcripts from other tax years.

The benefit of the automatic stay

One of the most significant benefits to filing for bankruptcy is the automatic stay. Upon filing, the automatic stay will go into effect. This effectively ends all contact from creditors, including phone calls and letters. It will also ensure that collection processes already underway, such as repossession or wage garnishment, stop.

Choosing a better financial future

Bankruptcy may not be your first choice, but it could be the right one for you. This could be the best way for you to escape your overwhelming debt and find a better future, one that is free from creditors, late notices and debt-related stress.

If you are unsure of the right path for you, you may find it beneficial to seek a complete understanding of your legal options regarding bankruptcy. When you have the right information, you will be better equipped to make a choice that will lead you to a stronger financial future.