Are you considering a Chapter 7 bankruptcy?
Do you need information about how the process works? Hi, I’m David Candler Hicks of Alliance
Legal Group. We’re a Florida law firm that focuses on helping people facing bankruptcy.
Join me today as we discuss Chapter 7 bankruptcy. In a Chapter 7 bankruptcy, a trustee is appointed
by the court to evaluate your financial situation. The trustee may then propose to the court
that many or all your debts be cancelled. In exchange, he or she sells or liquidates
some of your assets in order to pay your creditors. How long does this take? For most people,
the entire Chapter 7 bankruptcy process takes about four to six months and usually only
one or two trips to the courthouse. You’ll also be required to complete a credit counseling
course with an approved agency. To be eligible for a Chapter 7 bankruptcy,
you must show that your income, expenses, and debt burden, would not make it possible
for you to complete a Chapter 13 repayment plan. We’ll discuss more about the Chapter
13 bankruptcy process in another video. To get started with a Chapter 7, you file
a petition with the bankruptcy court along with a number of other supporting documents.
Upon successfully filing the petition, you will be given an “automatic stay” which
immediately stops most creditors from taking any further collection actions against you.
By filing for a Chapter 7 bankruptcy, you won’t be allowed to sell, give away, or
transfer any of your property until your bankruptcy is over unless you have the court’s permission. Approximately one month after filing for bankruptcy,
you will be asked to attend a meeting with your trustee and creditors, this is called
a “341”. Your creditors rarely show up for this meeting. Your trustee will run the
meeting and will ask you a few questions about your bankruptcy and financial position. In
most cases, this will be your one and only trip to the courthouse. It’s very informal
and takes only about five minutes. After your creditor meeting, it is generally
about 3 months before you get your discharge and all debts that are allowed are cancelled. The fact is, bankruptcy can be a complicated
process and some of the information I’ve shared with you today may seem a bit confusing.
Contact me and I’ll be happy to discuss your situation with you. We offer a free consultation
to explain your best options. I’m David Candler Hicks; have a wonderful day!