Debt Consolidation USA Explains Chapter 7 Bankruptcy Filing

Dallas, TX (PRWEB) July 30, 2014

Debt Consolidation USA shares in an article recently published last July 28, 2014 how consumers who are in a really tight financial spot should proceed with Chapter 7 bankruptcy. The article titled “Step By Step Chapter 7 Bankruptcy Process” explains the process involved that can help debtors manage expectations.

The article starts off by sharing how in 2013, statistics show that healthcare is the leading cause of consumers filing for bankruptcy. It has overtaken credit cards and even mortgage loan as the leading trigger that puts consumer in so much debt that the only financial option is to file for bankruptcy.

Chapter 7 is preferred by most people because it discharges the debt. Their assets that are outside the exemption list will be liquidated and used to pay off creditors. But this is easier said than done. Knowing the process in filing for bankruptcy can help the consumer proceed with it accordingly.

The article shares that the first thing a debtor must do if bankruptcy is the only option is to meet with the lawyer. Though bankruptcy can be done without help from a lawyer, it is best to have a lawyer to help with the process. There are some processes and jargons in bankruptcy filing that a lawyer can explain in layman’s terms.

There is also a means test required for every debtor filing for Chapter 7 bankruptcy. The article explains that this is meant to assess if a consumer’s financial capacity still qualifies for a Chapter 13 bankruptcy. If it does, debts will not be discharged and a repayment plan will be laid out by the bankruptcy court.

The article explains that the next step is to prepare the document to file. Commonly referred to as “schedules” in bankruptcy, these can include a consumer’s income, expenses, debts and even other financial transactions. Next step would be to have the lawyer file the petition supported by the schedules and followed right after by filing the statement of intention.

There is also a 341 meeting or the meeting with the creditors. This is set to have the lenders ask the debtor a couple of questions about the finances. To read the rest of the article, click on this link:

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