What Should I Expect From The Chapter 7 Process?
You are filing for Chapter 7, and you do not know what to expect. Because no one anticipates that they will need bankruptcy, few people understand the full Chapter 7 bankruptcy process. We will talk you through every step of Chapter 7 bankruptcy in Texas so you have a better idea of what to expect.
Below is a basic outline of the bankruptcy process, but it is crucial to have an attorney guiding you once you decide to file.
Filing Your Petition
You begin your Chapter 7 case by filing several documents, including a bankruptcy petition. You must also demonstrate that you qualify for bankruptcy by listing your income and expenses.
An Automatic Stay Goes Into Place
After you file your paperwork, the court places an automatic stay that prevents creditors from calling you or taking other collection actions.
The Court Assigns A Trustee
The court will appoint a bankruptcy trustee to oversee your case. Your trustee will confirm your eligibility for Chapter 7, as well as decide which pieces of nonexempt property to seize and how to handle your secured debts.
Meet With Your Trustee And Creditors
You will then receive a notice telling you the date and time when you will meet with your trustee and your creditors. In this meeting, you will discuss your finances, debts, property liquidation and other aspects of your case. Many people choose to have their attorney accompany them to this meeting.
Take Financial Courses
Texas requires debtors to take financial management courses before discharging debt in Chapter 7. These courses teach topics such as financial planning, debt management and budgeting.
Your Debts Are Discharged
In the final step, your dischargeable debts disappear. This step usually happens within 60 to 90 days of filing. Once your debts are discharged, you will have a fresh start, with fewer — if any — debts.
Start The Chapter 7 Process Today
The sooner you begin the proceedings for Chapter 7, the sooner you can wipe away your debts. William H. Lively, Jr. WHL, PLLC, can help you with these steps.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.