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How to prepare for Chapter 7 bankruptcy

On Behalf of | Apr 7, 2023 | Chapter 7

Not many situations are as stressful and frightening as struggling with debts that you cannot pay. Fortunately, Chapter 7 bankruptcy allows you to discharge unsecured personal debts so you can get back on your feet and focus on rebuilding your finances. 

However, the process of filing for bankruptcy can be very complicated. You are going to need to dedicate several hours to filling out forms and providing documentation. The last thing you want when you are struggling with debt is to commit mistakes that can lead to the refusal of your bankruptcy claim. 

Here are two tips that can help you successfully file for Chapter 7 bankruptcy. 

Gather your paperwork

Bankruptcy comes with loads of paperwork. Alongside the voluntary petition, you also need to file the “Schedules,” to furnish the bankruptcy court with an overview of your finances – your assets, creditors and monthly expenses. And this is not all. You also need to submit a Certificate of Credit Counseling, Statistical Summary, Credit Matrix and Statement of Financial Affairs. 

As you can imagine, bankruptcy involves a lot of accounting work as well. A genuine mistake could see you going through the process with your trustee again, and this can prolong the process.

Meet the pre-filing requirement

For your bankruptcy petition to go through, you must attend a pre-bankruptcy credit counseling session with an approved Trustee Program. You have to complete this course within 180 days before formally filing for bankruptcy. This course is meant to explore potential alternatives to your financial problems before settling on bankruptcy. It will also help you acquire crucial financial management skills so you can avoid future problems.

Protecting your rights

Chapter 7 bankruptcy can help you discharge unsecured debts like medical bills and credit card debt. Learning more about Pennsylvania bankruptcy laws can help you safeguard your rights and interests while filing for Chapter 7 bankruptcy.