Do I Need a Lawyer for My Chapter 7 Bankruptcy?

If you are considering Chapter 7 bankruptcy, you might be wondering whether you need to hire a bankruptcy lawyer to help with your case. You might be thinking that consumer bankruptcy is relatively straightforward in that you provide information to the bankruptcy court and receive a discharge of your debts. However, the U.S. Bankruptcy Code is extremely complex, and making even a minor mistake could put your entire bankruptcy case at risk. There are numerous steps to a Chapter 7 bankruptcy proceeding, and these steps require the debtor to show that he or she can pass the “means test,” as well as to fill out and submit precise information about assets and exemptions. In addition to the complicated process of filing for Chapter 7 bankruptcy, it could turn out that this is not the best bankruptcy chapter for your specific situation.
An Oak Park bankruptcy lawyer can ensure that you are eligible for Chapter 7 bankruptcy, that it is the best course of action for you, and that your bankruptcy filing goes as smoothly as possible. We will explain in more detail.
A Lawyer can Help with the Complex Requirements of a Bankruptcy Filing
Every Chapter 7 bankruptcy case has multiple steps, including the following:
  • Debtor will need to go through mandatory credit counseling;
  • Debtor must file bankruptcy petition and all required documents, which include schedules of the debtor’s assets and financial information to prove that the debtor can pass the “means test,” as well as documents on which the debtor claims exemptions;
  • Bankruptcy trustee will be appointed to the case, and the debtor will be required to submit additional documentation to the trustee, including the most recent tax return; and
  • The “meeting of the creditors” occurs, at which time the debtor will need to answer questions about his or her financial situation and the documents submitted.
All of those steps occur before the court even determines that the debtor is eligible for Chapter 7 bankruptcy. As such, it is essential that you have an experienced attorney on your side throughout these steps.
Is Chapter 7 the Right Bankruptcy Option for Your Situation?
Another important reason to work with a lawyer on your Chapter 7 bankruptcy case is that it could turn out that Chapter 7 bankruptcy is not really the right decision for you. In some cases, it might be that you are ineligible to file for liquidation bankruptcy because you cannot pass the “means test.” In other scenarios, you could simply benefit more from filing for Chapter 13 bankruptcy, especially if you are seeking to stop a foreclosure.
A bankruptcy lawyer can assess your situation and can talk through your options with you for seeking debt relief.
Discuss Your Situation with an Oak Park Bankruptcy Attorney
The general process of a Chapter 7 bankruptcy filing might sound relatively straightforward, but U.S. bankruptcy law is extremely complicated. As we discussed above, making even a minor mistake in your bankruptcy petition or in any of the documents you are required to file can delay your bankruptcy discharge or could even result in your inability to have your debts discharged. An experienced bankruptcy attorney in Oak Park can assist with your case. Contact the Emerson Law Firm for more information.
See Related Blog Posts:

Comments

Post a Comment

Popular posts from this blog

Payday Lending and Predatory Lenders in Illinois

If you are in substantial debt in the Chicago area and are living in a paycheck-to-paycheck cycle, you may have taken out a payday loan to make ends meet. While payday lending is illegal in a number of states due to the predatory nature of these loans, it remains legal in Illinois. As a result, many debtors in the state have used payday lenders, and far too many of those borrowers cannot repay what they owe. According to a recent article from Progress Illinois , consumers have filed complaints about payday lenders in the state, illuminating a need for federal rules that address harmful lending practices . Predatory Payday Lenders and Protections for Consumers Due to the perceived predatory nature of payday loans, twelve states in the country have banned these lenders from operating completely, according to a fact sheet from loans.org . The states that currently have laws prohibiting payday lenders from operating include Arkansas, Arizona, Connecticut, Georgia, Mary...
Read more

Phantom Debt Collection Scams on the Rise in Illinois

Have you been contacted by a person claiming to be a debt collector who is seeking to recover a debt you allegedly owe? If so, you are not alone. According to a recent report from CBS Chicago , such parties claiming to be debt collectors are on the rise, and they are scamming Chicago-area residents. These alleged debt collectors are part of schemes known as “phantom debt collection scams,” since they involve the attempt to collect on a debt that the consumer does not actually owe. How can you avoid becoming a victim in a debt-collection scam ? What should you do if you have been targeted by a fake debt collector? How Do Phantom Debt Collection Scams Work? Now, you might be thinking to yourself: I would never agree to make payment on a debt that I did not owe. But the scam is not always that simple. Parties at the center of debt-collection scams often target consumers who do actually owe debts (to someone or to some entity), and they prey on the fact that these c...
Read more

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti...
Read more