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How to Prepare for Chapter 7 Bankruptcy - gavel of a judge in court

Ways To Get Ready For Declaring Chapter 7 Bankruptcy

Chapter 7 Bankruptcy Lawyer

Making the decision to file for Chapter 7 bankruptcy is not easy. However, if you are struggling to pay your debt, declaring bankruptcy may be a wise choice. In order for the bankruptcy process to go as smoothly as possible, you must prepare for it properly.

Here are some ways to get ready for declaring Chapter 7 bankruptcy.

Prepare Proof of Income

First and foremost, you will have to provide proof of your income. Therefore, you should gather copies of your tax returns and pay stubs. To qualify for Chapter 7 bankruptcy, you also have to take a Means Test to prove that your income falls below the median income in your state.

Make a List of Your Assets

If you want to declare Chapter 7 bankruptcy, you will also be required to prepare a list of all your property and how much that property is worth, including homes and vehicles. You do not have to worry about listing each household item you own, as smaller items are usually grouped together in your bankruptcy forms.

Gather Copies of Credit Reports

The next step you have to take is obtain copies of your credit reports, which will contain a list of all your creditors. This report will help you avoid forgetting creditors on your bankruptcy. If you do not include every creditor on your bankruptcy forms, it could delay your case.

Complete a Credit Counseling Course

Before a judge can approve your bankruptcy, you must first complete a credit counseling course. In this course, you will learn if you need to file for bankruptcy in the first place. A counselor will assess your income and expenses and inform you of all your options. He or she will also help you develop a budget. You can take this course online or over the phone.

Gather Fees

Keep in mind that you will have to pay a court filing fee for Chapter 7 bankruptcy. If you hired a bankruptcy lawyer to assist you with your bankruptcy, you will also be responsible for coming up with attorney fees. Lawyers generally charge a flat fee for Chapter 7 bankruptcy.


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