Chapter 7 Bankruptcy

Chapter 7 bankruptcy is designed for individuals; couples and small business owners wishing to wipe their slate clean but are unable to afford to do so by any other means. It costs about $200 to file a Chapter 7 bankruptcy. Although the overall cost may escalate if you hire an attorney. You can save money by being thorough and organized presenting a clean case and ordered petition.

If you are an individual, couple or small business owner filing for bankruptcy 7 chances are the court will allow you to keep all or most of your property. Currently, a person may receive a Chapter 7 discharge only once every six years.

To file Chapter 7 bankruptcy you must, under oath, provide the following information:
A list of all debts including collection agencies, law firms and creditors. This must also contain addresses, account numbers, amounts due, and the date of which each debt was incurred. You must also provide full details of all your real and personal property. The court will also expect a schedule of your income and living expenses, for instance, your monthly; clothing, mortgage, utilities, insurance, transportation, medical, childcare and eating expenses
.

All listed creditors will receive notice of the petition from your bankruptcy court. Once the petition is filed, most actions by creditors to reclaim any money must stop. This means they cannot telephone you or take you to court during this time. Nor can they collect any more money off you. After you have filed for chapter 7 bankruptcy you will be expected to attend a hearing of creditors. Here, they will be able to ask questions about your financial position. This will be presided by a trustee and you must attend. The trustee will question you about all matters pertaining to your petition. It is advisable to comply with the trustee to ensure an independent judgment.

It takes approximately three months following the meeting of creditors to receive a discharge. If you defraud your bankruptcy petition, for instance holding assets back or making false oaths in connection with your petition, the discharge can be revoked. You will be also liable for penalties or in some cases imprisonment if you commit bankruptcy fraud.