A chapter 7 bankruptcy wipes out most of your debt. It involves filing the appropriate paperwork, working with a trustee, and waiting for the debts to be discharged by the court. Of course, all of this is much more involved than that. Here is some information on the process and why it is helpful to hire an attorney for chapter 7 bankruptcy filing.

Wondering about Bankruptcy

Before you even begin to file any paperwork it is a good idea to meet with a bankruptcy attorney. They know the different requirements to have your debts wiped out by the court. They will ask questions regarding your debt, your income, your employment, and your assets. This will tell them if you qualify for bankruptcy. Of course, they may also determine a better way to handle your debt to avoid bankruptcy. 

Filing the Paperwork

Once it is determined you qualify for bankruptcy, the lawyer will start gathering all the necessary data to prove to the court why you cannot pay your debt and deserve to be given a chance to start over. Be prepared to have every aspect of your financial life scrutinized. An attorney knows what to look for and the proper papers, In addition, they will make sure everything is filled out correctly and within the time allotted by the court.

Working with a Trustee

Once the papers are filed the court will appoint a trustee for the case. This may or may not be your lawyer. The trustee's job is to go through all your asset and determine what needs to be sold to partially pay your creditors. Your attorney will work with the trustee if they are not the trustee. They have already gone through your assets and know what can be exempt from selling that you will be able to keep. Once things are sold, the trustee will divide the proceeds among your creditors according to how much you owe each one.

During this time, your chapter 7 bankruptcy attorney will inform all your creditors about the court case and have them stop sending bills or calling you for payments. In addition, they can ask for interest and late payments to quit accruing on the accounts. 

Waiting for Discharge

Once the trustee has divided the money, the judge will sign off on the bankruptcy. This is when your debts are wiped. In many cases, there is a waiting period before the debts are completely discharged. In addition, you need to keep in mind that debts like unpaid child support, unpaid taxes, and student loans are not wiped with bankruptcy.

If for no other reason than finding out if you qualify for chapter 7 bankruptcy filing, contact a firm like McManus & Associates. They can help you take care of things so you don't have to stress about finances anymore.