Chapter 7 Bankruptcy: Individual Bankruptcy For Below-Median Income Households

Chapter 7 bankruptcy is one of the two types of individual bankruptcy that you can file to relieve and eventually discharge unsecured debts. Unsecured debts are debts where a lender does not have any collateral being held to protect themselves in the event that a loan is not repaid.

At The Cook Law Firm, APLC, we leverage our combined 125 years of experience to assist with your bankruptcy needs. Contact us for legal guidance through the Chapter 7 bankruptcy process.

How To Qualify For Chapter 7

Before jumping into any type of bankruptcy, it’s imperative that you have an understanding of how each functions, who they’re designed for and the time frame you’ll be dealing with. Chapter 7 bankruptcy is intended for people making less than the median income for where they live.

Here’s what you need to know about qualifying:

• The government uses demographic data to determine median household incomes for different areas.
• This median income is used to determine whether you qualify for Chapter 7 bankruptcy.
• To qualify, you must make less than the median household income.
• If you make more than the median income for your area, you’ll need to file for Chapter 13 bankruptcy instead.
• In Chapter 7 bankruptcy, you will be forfeiting your nonexempt property to be seized by the bankruptcy trustee.

While forfeiting property may not seem ideal, it pays off – and quickly too. Once the property is liquidated and redistributed among lenders to pay off most, if not all, of your unsecured debts, any remaining debts covered by your bankruptcy case will be discharged. This allows you to start fresh and regain control of your financial future.

How Chapter 7 Bankruptcy Works

Once you’ve determined that Chapter 7 bankruptcy is right for you, the process can begin. For a deeper understanding of the process, we recommend contacting our attorneys at The Cook Law Firm, APLC, by calling 318-703-5851 or sending an email. However, we’re going to do everything in our power to provide a brief but comprehensive description of how the Chapter 7 bankruptcy process works.

All in all, this process will take anywhere from four to six months, depending on your personal situation. That said, in some situations, when filing for bankruptcy, you may be directed toward an alternative debt relief solution entirely.

Pre-Bankruptcy Debt Counseling

Before the bankruptcy process officially starts, you’ll be required to undergo debt counseling. This serves as a final assessment of your finances to ensure that there are not any other potential options you could use to fix your finances.

If a clear solution is available, you’ll be instructed to pursue it rather than filing for bankruptcy. However, if it’s determined that bankruptcy is favorable for all parties, the process will move forward.

Filing Legal Documents And Meeting With The Trustee

Now you’re tasked with filing a variety of legal documents with the bankruptcy court. These documents are vital to building your case. It’s absolutely essential that you complete them correctly in addition to filing them properly.

Then, after the paperwork is filed and proceedings are scheduled, you’ll meet with a bankruptcy trustee to examine your nonexempt assets and distribute them to pay your debts in accordance with bankruptcy codes.

Objection Period And Debt Discharge

Once the meeting with the trustee and the asset distribution are done, there is a 60-day period for any objections to your case to be filed. If no objections are filed (or approved) in the 60-day period, you’ve reached the end of the bankruptcy process. Or at least you’re almost there. At this point, you’ll undergo a helpful credit reconstruction course and have any remaining debts discharged. You can expect an official notice in the mail one to two months after this date!

We can’t stress this enough: when it comes to bankruptcy, while it’s a fantastic resource that can truly help you, it needs to be done correctly the first time. This is not to say that you can’t file for bankruptcy by yourself. Rather, we’re saying that it’s going to serve you much better to have bankruptcy lawyers who have experience in the Louisiana bankruptcy system.

Contact The Cook Law Firm, APLC, For Chapter 7 Bankruptcy Assistance

When you choose our bankruptcy attorneys, we won’t just be helping you take care of paperwork or provide advice. We will also represent your interests throughout the course of a stressful, intensive process.

If you have any questions about Chapter 7 bankruptcy or would like to recruit our help, call 318-703-5851 or fill out this online form. We provide comprehensive bankruptcy services to individuals and families across Louisiana, including Haughton and Shreveport.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.