How does Chapter 7 bankruptcy work?

Chapter 7 bankruptcy is a process that allows you to eliminate most of your debt. But it's different from other kinds of bankruptcy like chapter 11, 12, 9, or 13, because you're allowed to keep certain assets that you would have had to surrender in other cases, like Chapter 13 bankruptcy – so long as those items are exempt. It can be a helpful option for those who are struggling with too much debt and want to get rid of it quickly. Chapter 7 also gives you a fresh start, eliminating all (or most) of your debt.

The first step in the Chapter 7 process is filing a petition with the court. This is usually done with the help of an attorney, and it takes place at the courthouse where your case will be heard. The petition is basically a request for the court to authorize you to file for Chapter 7. You also need to file schedules and statements. There are Schedules A, B, C, D, E, F, G, I, and J; there is also a Statement of Financial Affairs (or SOFA). But before you even file anything, you need to see if you pass the means test. If you don’t pass the means test, you can’t file a chapter 7 and if you do, you can get in trouble for doing so.

 

A yellow poster stating, "bankruptcy attorney" - call (801) 676-5506 for a free consultation.

Once you've filed, there are fees associated with the filing; depending on your situation, these fees can vary. A judge then holds a hearing at which both parties (i.e., the debtor and creditors) present their cases. If approved by the court, your debts will be "discharged"—this basically means that all of your debts will be completely wiped away. There are some exceptions—most notably, student loans and some taxes—but in most cases, debts that have been discharged will no longer appear on your credit report or affect your credit score or ability to borrow money.

If this sounds complex, it is because it is.  You should talk to a bankruptcy attorney for sure, please call this law firm for a free bankruptcy consultation:

Ascent Law LLC

8833 S Redwood Rd Ste C

West Jordan UT 84088

(801) 676-5506

https://g.page/AscentLaw

https://www.ascentlawfirm.com/chapter-7-bankruptcy-in-utah/



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