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What should I know about chapter 7?

On Behalf of | Dec 12, 2018 | Chapter 7 Bankruptcy |

When you realize that your finances have spiraled out of control, you may consider filing for bankruptcy in Tennessee. There are many different types of bankruptcy and as you begin looking into your options, it is important to understand the basic information so you know which kind will be best for your specific situation. You may want to start your search by learning about chapter 7.

One of the important things you need to know is whether you are eligible for chapter 7. According to the United States Courts, you can file for chapter 7 bankruptcy if you are a private individual or if you have a business partnership. You typically need to go to credit counseling before you file for bankruptcy and you also usually need to attend any court sessions connected with your debt. Chapter 7 is different from other kinds of bankruptcy because it typically does not include a repayment plan. Your assets are usually sold to pay off your debt.

You usually work with a trustee during the bankruptcy process. This person is in charge of overseeing your case and working with your creditors. A trustee typically sells your assets to get rid of your debt; however, he or she can also make sure you retain certain assets if a creditor tried to take them before you filed your bankruptcy petition. You usually need to make sure this trustee has all of the important information about your assets. This means you might need to provide him or her with property or financial records. A trustee might also make sure you understand all of the fine details about the bankruptcy process.

In order to open a chapter 7 bankruptcy case, you generally need to file a petition. This petition typically needs to include information about your creditors and how much you owe them, as well as details about your income. It is important to remember that filing for bankruptcy usually involves filling out large amounts of paperwork. While you may expect to receive these documents from your local court, your court typically does not provide these forms. Instead, it is your responsibility to collect the relevant paperwork.

This information is intended to educate. It should not be used in place of legal advice.