Making the choice to file for bankruptcy is not easy. If you have arrived at this point, it is because you are facing difficult financial circumstances that are beyond your power to control. Whether you are facing credit card debt that you cannot pay or you had to deal with a medical emergency, you need help with your financial situation.
While filing for bankruptcy is not often a person’s first choice, it is actually a practical and beneficial step for some Tennessee consumers. You have the choice of filing for Chapter 7 or Chapter 13 bankruptcy. If you have a significant amount of unsecured debt, Chapter 7 may be the most appropriate option. No matter which one is right for you, it can be helpful to learn more about what to expect from the process.
What happens during Chapter 7 bankruptcy?
Chapter 7 bankruptcy is an attractive option for many consumers because it only takes a few months to complete the entire process. If this is the best type of bankruptcy for you and you are eligible, you can expect the following from the process:
- When filing for bankruptcy, you will have to file certain documents with the court in addition to the bankruptcy petition, including list of assets and liabilities, information about finances and more.
- A few weeks after filing, there will be a meeting of creditors. During this meeting, they can ask you questions about your financial obligations, income and personal property.
- Upon filing for bankruptcy, the automatic stay will go into effect. This halts all contact from creditors and debt collectors, including phone calls, letters and other forms of contact.
With Chapter 7 bankruptcy, there is also the liquidation of certain assets in order to pay some of your debt. Don’t assume you will lose all of your personal property, however. There are exemptions that will allow you to keep many of the things that are important to you.
Your financial future
If you believe filing for Chapter 7 bankruptcy is a good idea, you may want to start by speaking with an experienced bankruptcy attorney. This process can help eligible consumers deal with credit card and medical debt, but it is not the right call in every situation.
An evaluation of your case can help you understand the options available to you and how you can make choices that are best for your financial future. You can also learn more about what to expect from Chapter 7 bankruptcy if you decide to move forward with that process.