In order to file a Chapter 7 Petition, the individual(s) must meet certain eligibility criteria with respect to income amounts. During the initial consultation, your income will be reviewed to determine if you qualify to file under Chapter 7. If you qualify, we will review your debts and offer guidance with respect to what debts are dischargeable in bankruptcy. You will then be asked to gather and provide various documents and complete a court-mandated debt counseling course prior to preparing your Petition.
In preparing your bankruptcy Petition, we will indicate whether you wish to reaffirm any secured debts, such as vehicle financing agreements or mortgage loans. As long as your account with the creditor is current, they should be willing to enter into a Reaffirmation Agreement with you. A Reaffirmation Agreement is where you agree to continue to paying back the debt and keep the collateral (e.g car or residence). It is essential that if you want to keep the collateral in question that you execute a Reaffirmation Agreement or the creditor will consider the debt discharged in the bankruptcy.
Once your Petition is filed, a hearing date will be set approximately 30 days later. The hearing is called a "Meeting of Creditors" or "341 hearing" and is administered by the Trustee assigned to your case. You will be represented by counsel at this hearing and are required to attend this meeting to verify your identity and to answer questions posed to you by the Trustee. After filing, you must complete the second credit counseling course. Then the U.S. Bankruptcy Court will review your file and, assuming all is in order, you will receive an Order of Discharge which is evidence that your debts listed in the Petition have been discharged. The court will then close the case.
Contact the Dillon Legal Group, P.C.if you are seeking a Chapter 7 Bankruptcy filing in Franklin, Greenwood and Martinsville, IN