What Steps Can You Expect When Seeking to Discharge Debts Permanently?
When you’ve lost your job or had an unexpected injury or illness, bankruptcy may be the best way to get a fresh start. If you qualify, you can ask the bankruptcy court to permanently discharge certain debts in exchange for the relinquishment of some of your property. If you are eligible for liquidation of debt under Chapter 7, here’s what you can expect to complete the process.
Before Your Petition is Filed
First, of course, you must submit to the means test. Once you have, though, you must still complete a credit counseling course before you can actually submit your bankruptcy petition to the court. The credit counseling may be done over the phone or online.
Filing for Protection under Chapter 7
To initiate the process, you must complete and file the necessary bankruptcy forms with the bankruptcy court. The forms are generally available online, but you don’t want to complete them yourself. You’ll be much better served to have an experienced bankruptcy lawyer complete the documents for you. You’ll have to disclose all property, income and debts, as well as certain information about any financial transactions over the past two years. The bankruptcy trustee will also ask for a copy of your most recent tax returns.
After Your Filing Is Complete
The bankruptcy trustee will schedule a meeting of creditors, customarily within 30 days of the filing of your petition. You must attend this meeting (though your creditors may not). You can expect to be placed under oath and asked questions by the trustee.
With two months of the meeting of creditors, you must take and complete budget counseling, either by phone or online. The bankruptcy court will require that you complete and file a form documenting your participation in budget counseling. The counseling agency must also provide a certificate of completion.
After that, you may be in a holding pattern for a few months, until the court gets to your case. You will then receive written notice of the discharge of eligible debts. You will need to work directly with the trustee if you have to turn over any property in exchange for the discharge.
Contact Attorney Howard N. Sobel
At the office of Howard N. Sobel, we provide personal bankruptcy counsel to men and women throughout the state of New Jersey. Contact our office online or call us at 856-424-6400 to set up a free initial consultation. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
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