Are you tired of seeing your credit card balance get higher and higher, or having an endless pile of medical bills arrive each month? It can be time to consider filing for bankruptcy. One common option is Chapter 7 bankruptcy.

Learn about the basics of Chapter 7 bankruptcy and what you can expect during the bankruptcy process.

What Is Chapter 7 Bankruptcy?

Chapter 7 is a popular type of bankruptcy for individuals. Also known as liquidation bankruptcy, this enables you to clear your debt by selling assets to pay off non-exempt property – but most property is exempt. Unlike with Chapter 13 bankruptcy, you do not need to create a repayment plan to pay off the rest of your debts. Instead, most of them will be discharged through the bankruptcy proceedings.

Questions to Ask Your Chapter 7 Bankruptcy Attorney

Before filing for Chapter 7, it’s essential to hire a trusted and experienced bankruptcy attorney. You want to ensure you know exactly what to expect during the bankruptcy proceedings and how it will impact you in the short and long term. Getting these questions answered before you start the proceedings will ensure you will not experience any unwelcome surprises during the process.

1. What Fees Will I Need to Pay?

Before selecting a Chapter 7 bankruptcy attorney and starting the bankruptcy process, it’s important to understand exactly how much it will cost. You need to make sure you know how much the attorney fees are, as well as other filing costs. Ask your attorney for a full run-down of the expenses you may incur. If these seem too hefty for you to handle, ask the attorney about payment options.

2. What Assets Will I Lose?

You might be worried about filing for Chapter 7 bankruptcy because you are afraid of losing your property- including your house or your car. While we understand the fear, it’s important to understand how your assets are handled during Chapter 7 bankruptcy. In most cases, you can keep your house and vehicle, and many other assets, by marking them as exempt. You need to work with your bankruptcy attorney to review all of your debts and assets and determine what you mark as exempt.

3 How Long Will Chapter 7 Bankruptcy Be on My Credit?

When you file for Chapter 7 bankruptcy, it will show up on your credit report. There is no way around this! However, it isn’t permanent. In most cases, it will stay on your credit report for 7-10 years. To determine how your bankruptcy will impact your credit report, work with your bankruptcy attorney closely to set expectations so you know what to expect during and after your bankruptcy proceedings.

4. Can I Have a Credit Card Throughout My Bankruptcy Proceedings?

When you file for Chapter 7 bankruptcy, you need to give your attorney and the court a full list of all of your credit cards that have a balance on them. For those that do not have a balance, you might lose your borrowing privileges. Typically, credit card companies will be alerted to your bankruptcy case and your borrowing power will be removed.

It can be difficult to qualify for new lines of credit after your Chapter 7 bankruptcy. It’s important to work with your bankruptcy attorney to understand what to expect and strategize about how to rebuild your credit after filing for bankruptcy.

5. How Long Does the Chapter 7 Process Take?

When you file for Chapter 7 bankruptcy, it’s essential to ask your attorney how long the process is expected to take, from start to finish. Your bankruptcy lawyer can explain how long it takes to file the paperwork to start the process, and what happens next. For example, you will need to complete a bankruptcy course and attend a 341 meeting of creditors.

Contact A Chapter 7 Bankruptcy Attorney

When you are considering filing for Chapter 7 bankruptcy to get rid of your debt, you need to know exactly what to expect during the process. You need to hire an experienced attorney. Our attorneys can help you determine what steps you need to take. We will also help clear up any confusion you might have after your bankruptcy is final! Don’t let debt ruin your life. Call (405) 529-9377 for a free case review.