Chapter 7 Straight Bankruptcy

When you file Chapter 7 a "bankruptcy estate" is created and a trustee is appointed to take take over your non-exempt property. You immediately get protection of the automatic stay which stops all collection activities against you or your property. Any property of value in excess of the allowable exemption amount (called "non-exempt property") will be sold or turned into money to pay your creditors. You will be able to keep (claim as exempt) certain personal property and possibly real estate. The types and value of property that is "exempt" depends on state and federal laws applicable to your case. Your exempt property will not be sold or liquidated by the trustee. If all you own is exempt property, your case will proceed as a "no asset" case.

Upon completion of the case you receive a discharge of dischargeable debts listed on your petition and schedules. Dischargeable debts typically include most all unsecured debts (and may include debt secured by specific property if you elect to surrender or give back the collateral to the secured creditor). Certain types of debts cannot be discharged in bankruptcy (non-dischargeable debts).

---------------------------------------------------------------------------------------------------------------------- THE CHAPTER 7 BANKRUPTCY PROCESS & DISCLOSURE REQUIREMENTS. To insure a smooth and successful bankruptcy, your Petition, Schedules, Statement of Financial Affairs, and supporting documentation must be prepared completely and accurately. Complete and candid disclosure of your financial affairs (all assets, debts, and financial transaction disclosures) is required by law.

BAPCPA Requirements - Under 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) individuals are now required to qualify for Chapter 7 by passing the "Means Test." BAPCPA also equires individuals complete two credit counseling classes (one class before filing the Petition and the second before a discharge can be obtained).

The "Means Test" - Part I of the Means Test compares your gross income (calculated based on you six (6) months income immediately prior to the petition filing date) against the IRS Median Income for the same size family in your county and state. If your annualized gross income is less than the IRS Median Income you qualify for Chapter 7 under Part I of the Means Test. If your annualized Gross Income is higher than the IRS Median Income, then Part II of the Means Test is required and you should consult an attorney. In most cases, you can still qualify for Chapter 7, but there additional analysis and information is required. Completing Part II of the Means Test can be complicated. After allowed deductions are taken, if your disposable income under Part II of the Means Test falls within certain limits, you qualify for Chapter 7.

Pre-Filing Credit Counseling Course - A pre-filing credit counseling course must be completed prior to filing your Chapter 7 Petition. The course must be completed through a provider authorized by the bankruptcy court in your district. These classes may be completed online or over the telephone, and a certificate of completion is e-mailed to your attorney for filing with the Court.

341 Meeting of Creditors - You will be required to attend a "meeting of the creditors" (also called a "341 Hearing"). The meeting allows the trustee to examine you under oath about your bankruptcy Petition, Schedules, and Supporting Documents and to ask you questions about your assets, liabilities, financial affairs, and other matters pertinent to your bankruptcy. Creditors may also appear and ask you questions about your petition and schedules. In a typical Chapter 7, the 341 Meeting is the only time you will need to appear before the trustee or the bankruptcy court.

Pre-Discharge Debtor Education Course - After your petition is filed, you must complete the second debtor education course before the Court will grant your discharge.

• Free Evaluation Request Form (Secure Online Form)
• Complete Your Free Initial Consultation - We are available to complete the consultation at the Client's convenience and schedule. We realize some clients are facing imminent foreclosure or other lawsuits and need expedited services, which we provide at NO ADDITIONAL COST to the Client.

After Retaining the Firm:

• Gather Supporting Documents: Each Client's supporting documents will be different, but the following are typical documents requested:
  • Six (6) months paycheck stubs.
  • Six (6) months bank statements.
  • Three (3) years personal tax returns
  • Recent credit card statements.
  • Copy of recent utility, telephone, internet, and other household bills.
  • Copy of Residential Lease.
  • Copy of Financing Agreement for Car Loan (stored in the glove compartment of the vehicle).
  • Information on any Real Property Owned (Copies of deed and mortgage, if available).
  • Copies of any Court Documents received (foreclosure actions, creditor lawsuits, garnishments, etc).
  • Copy of divorce decree or marital settlement agreement (if applicable).
  • Copy of child support obligations, alimony, or other domestic support documents (if applicable).
• Complete Your Chapter 7 Bankruptcy Application (can be completed securely via online application)
• Complete Your Household Inventory.
• Complete Your Credit Report Authentication (Can be completed in-office or via secure online link). Your Credit Report will also include, at no additional charge, the MYHORiZON Credit Score Predictor, which predicts the effect of filing bankruptcy on your current credit score one year from filing, assuming certain credit management practices are met.
• COMPLETE YOUR FIRST PRE-FILING CREDIT COUNSELING COURSE (Certificate of Completion E-Mailed to Us direct from Course Provider).

   

NOTE: As part of our standard service, we provide you with written instructions on what to do if any creditors contact you after you have retained the firm but before the petition is filed, including documenting any continuing collection calls after the creditor has knowledge you have retained legal counsel. This is part of our commitment to defend and represent our clients during the entire bankruptcy process.

We Prepare Petition and Schedules - We will prepare the initial draft of the Petition and all Schedules within 1 to 3 business days after our receipt of the supporting documents, bankruptcy application, household goods inventory, and credit report authentication. Expedited Service is available if needed or requested for the Client's personal situation (no extra charge).

Client Review Meeting: We will meeting with you to review the Draft Petition and Schedules, confirm any outstanding requirements and documents, set time lines for receipt of the outstanding documents, and make any amendments required to make the Petition and Schedules accurate and complete.

Client Signing Meetng: We will meeting with you to sign the FINAL FILING VERSION of the Petition an Schedules.

After filing your petition, you receive the following document package:

1. Copy of your signed petition
2. Instructions on what to do and to contact us if any creditors/collection agencies contact you after we have filed your petition, so we can take appropriate action to defend your rights against collection agencies violating the Automatic Stay.
3. Copy of the Notice of 341 Meeting (date, time and location);
4. Driving directions, a printed map, parking instructions for the 341 Meeting, and instructions on what identification will be needed at the 341 hearing (driver license and social security card) and alternative acceptable types of identification;
5. An Information letter "what to expect at your 341 Hearing" so our clients can feel comfortable. We realize going to court is stressful for clients, so we are avaialble to answer questions before your 341 meeting and we arrange to meet our clients early the day of the hearing to go over the 341 meeting, answer any final questions, and try to ease stress levels.

45 - 60 DAYS AFTER FILING PETITION: Attend 341 Meeting of Creditors

90 - 120 DAYS AFTER FILING PETITION: Receive Discharge.

45 - 60 DAYS AFTER DISCHARGE OBTAINED: Value-Added Post-Discharge Verification Service: Approximately 45 days after discharge, if you select our automatic post-discharge credit report verification and dispute package. We will check your credit to insure accounts were updated and are being reported as they should be and if not, we will prepare and mail you a dispute package for signing and pre-addressed to all three credit reporting agencies instructing them to make the corrections and report your discharged debts correctly.

120 - 150 DAYS AFTER FILING PETITION: The Case will be closed (unless there are outstanding requirements to be met, such as a promissory note with the trustee for repurchase of non-exempt value (equity) in personal property.

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BENEFITS OF CHAPTER 7 - Chapter 7 provides immediate benefits to individuals with unsecured dischargeable debts (such as credit cards, medical bills, personal loans, etc.) and who cannot pay their monthly obligations.

• An immediate stop to harrassing collection calls and letters.
• Elimination of most unsecured personal debts.
• A fresh start financial start free of foreclosure deficiency judgments, credit card debts, and free of the constant worry and stress of collections.
• Protection of the bankruptcy court from garnishments, collection activities, deficiency judgments, and more.

DISCLOSURE (DEBT RELIEF AGENCIES). Law Firms, including The Gilmore Law Firm, P.A., are designated as "debt relief agencies" by the Bankruptcy Code. Thus, we assist people obtain debt relief by filing bankruptcy. WE ARE NOT A CREDIT REPAIR OR DEBT CONSOLIDATION COMPANY.

DISCLAIMER (WEBSITE INFORMATION IS NOT LEGAL ADVICE): The information you obtain from this website is for general information purposes only and is not legal advice and should not be interpreted to be legal advice. You should consult an attorney for legal advice regarding your individual situation. We invite you to contact us and we welcome your calls, letters and e-mail. However, contacting us or communicating with us through our website does not create an attorney-client relationship. No attorney-client relationship is intended, created, or will exist until a written agreement for legal services is entered between you and The Gilmore Law Firm, P.A. All Free Bankruptcy Consultations are governed by our separate "Consultation Agreement" and the terms of use of this website. By requesting a free consultation, you acknowledge that you have read, understand, and agree to the terms of our Consultation Agreement and the terms of use for this website, as may be amended from time to time.

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