5 Things That Must Happen Before You File for Chapter 7 Bankruptcy
Is Chapter 7 bankruptcy something you plan to file for in the next few months? If you are, you must complete at least five things before you can file the documents. Your bankruptcy attorney will help you know what these are, and he or she will help you accomplish them. If you are wondering what to do, here are the five things you must complete before filing.
1. Hire a Lawyer to Assist You
It would help if you did not attempt a bankruptcy case without legal counsel even though you can use do-it-yourself forms to file. Filing without a lawyer is not an easy task, though. The forms and procedures are complex. They take time, and they require accuracy. If you do not file every necessary form, you might end up with a dismissed case. The trustee may also dismiss your case if you fill out a form with wrong or incomplete information.
2. Complete the Means Test
Completing the means test is another critical step in the process, and this, too, is something you must do before filing. This test is one that all bankruptcy attorneys use. The purpose is to make sure you qualify for Chapter 7 based on the income you earn. If you pass this test, you can use Chapter 7. If you fail, you cannot use this type. The test is not as simple as you might think, so you should let a lawyer work through it with you.
3. Gather All Your Documents
Filing for Chapter 7 also requires a lot of paperwork and information. Your lawyer will provide you with a list of the documents needed to file. You should expect to need your tax returns, pay stubs, loan statements, and titles to your assets.
4. Complete Credit Counseling
You also cannot file for Chapter 7 without completing a course in credit counseling. You will need to complete a second course after you file, but you cannot file without a certificate from the first course. Your attorney will give you the name of a school to use for this purpose.
5. Pay Your Fees
Finally, you cannot file without paying your fees. There are two types of fees for a Chapter 7 case. The first is for the costs of filing documents in the court. The second is the fees for the legal services your lawyer provides to you.
If you are ready to file, you must complete these five things. If you have not completed these steps, start by hiring a bankruptcy lawyer.