STEPS IN A CHAPTER 7 BANKRUPTCY

Learn The Steps in a Chapter 7 Bankruptcy

• Assessing Colorado or other state as proper venue to file: You must have resided in Colorado, or the state you wish to file, for the past 180 days, or 90 days or more than any other state in the past 180 days.

• Assessing Eligibility Under the Means Test: To initiate the bankruptcy process, consider whether you’re eligible for Chapter 7 bankruptcy through the “means test”. This considers your annual income from whatever source (excluding social security payments), household size, and monthly expenses to determine whether your income is below the median for your state – qualifying you for Chapter 7. Or, do other factors of income and expenses allow you to file a Chapter 7.

• Completing a Credit Counseling Course: Before proceeding, attend a credit counseling course by a nonprofit credit counseling agency. This requirement is intended to help you understand your current financial situation and available alternatives to bankruptcy.

• Filing the Bankruptcy Petition: Initiate the bankruptcy process officially by preparing a petition and several other documents detailing your financial circumstances. These will be filed with the bankruptcy court.

• Providing Financial Documents to The Bankruptcy Trustee: You’ll need to share detailed financial records with the bankruptcy trustee. These include recent tax returns, pay stubs, any domestic support obligation, and documentation regarding any major financial transactions.

• Attending the Section 341 Meeting of Creditors: A meeting with the bankruptcy trustee, known as a “341 meeting”, is held about a month after filing. This gives the trustee and your creditors an opportunity to question you under oath about your bankruptcy documents.

• Completing a Debtor Education Course: Before your debts can be discharged, complete a debtor education course approved by the U.S. Trustee Program. Upon completion, you’ll receive a certificate to file with the bankruptcy court as proof of the completed course.
• Getting a Discharge of Debts: This is the final step wherein your eligible debts will be wiped out. Getting discharged typically happens 60 to 90 days after the 341 meeting.

Remember to consult with a competent attorney at LONG & LONG P.C. throughout this process for a comprehensive understanding and smooth navigation of the bankruptcy process. Our law firm is well-versed in helping clients through these steps and can provide the necessary guidance. Call now at 303-832-2655!