Step 3: Filing Chapter 7 Bankruptcy
After first completing your credit counseling session and providing all appropriate records and financial information, your Chapter 7 bankruptcy attorney will assess your situation and draft a bankruptcy petition.
Your personal financial information, including all of your income, assets, expenses and debts will be required on your bankruptcy petition and on any related forms and schedules.
You will also have to include any applicable exemptions to which you are entitled.
You might be wondering how important it is to disclose all of your debts when seeking to file for Chapter 7 bankruptcy.
Whether a failure to list certain debts is an honest mistake or a deliberate action, trustees view bankruptcy fraud very seriously and you can be prosecuted even if it was a simple error that went uncorrected.
At this point, the Chapter 7 bankruptcy lawyer will file the petition in local bankruptcy court, which will appoint a bankruptcy trustee to your case.
In most cases, the court will also grant you an Automatic Stay, which means that creditors are temporarily prevented from taking further action against you outside of bankruptcy court.
Filing Chapter 7 Bankruptcy Steps
The above summary is not legal advice. Laws may have changed since our last update. For the latest information on bankruptcy laws, speak to a Chapter 7 bankruptcy lawyer in your state.