Chapter 7 Bankruptcy Forms: Everything You Need To Know
Bankruptcy is a word that nobody wants to hear regardless of their current financial situation or their occupation. The status can wreck your finances and credit, potentially ceding them to the courts. No matter what sort of condition you’re in at the moment, you probably don’t want to even consider the possibility of personal bankruptcy.
As a last resort, however, it can really help you to get back on your feet if you’ve suffered some kind of major loss. Not all bankruptcies are created equal, and some types can help you get back to normal much faster than others. People can use a fresh start when their finances go wrong.
Success Tax Relief agents have always recommended that people weigh all options before jumping into anything headfirst. Take a moment to think about whether or not Chapter 7 Bankruptcy would be right for you.
What Is Chapter 7 Bankruptcy?
Although all bankruptcies stay on your record for years, a Chapter 7 bankruptcy usually only takes around 3-6 months from filing to relief from your unsecured debts. While you might lose some of your luxury possessions under this sort of arrangement if needed to help settle debts, you’ll be able to keep any salary or wages you earn after you file.
That means Chapter 7 allows you to retain any property you purchase after you’ve finished filing. Eventually, you’ll even be able to obtain new lines of credit. While you could get stuck with a higher interest rate, you could get a credit card or a bank loan within a year or two of filing.
How Does It Work?
In most situations, you have to voluntarily apply for Chapter 7 since you can’t generally be forced into it. This is actually a good thing since it means you’ll be able to explain to future lenders that you worked to get out of debt as opposed to being forced into some sort of involuntary procedure.
You’ll need a form called a Voluntary Petition for Individuals Filing for Bankruptcy, which is number B 101 and only applies to individual debtors. Presuming this is accepted, you’ll then be asked to file 101 parts A and B, which explain any eviction judgments against you if necessary. There’s a form 103A that can allow you to pay the filing fee in installments, but it’s generally a good idea to pay this upfront if at all possible so you don’t end up accruing yet another expense in the meantime.
Can I File Chapter 7 Myself?
In theory, you could file for Chapter 7 bankruptcy relief yourself though many people find it easier to get some help because the process is relatively complicated. You may need to attach form B 106 manually.
B 106 consists of a summary of all your assets and liabilities along with certain specific statistical information needed to process your claim. This is on top of a number of other forms, like B 122A-1, that are used to test the need for you to achieve debt relief. That particular form needs to include a statement of your current monthly income so that they’re able to judge whether or not you really need relief. As a result of this complexity, it’s much easier to work with professionals.
Get Help To File Chapter 7 From Success Tax Relief
Success Tax Relief has helped countless individuals just like you to get out of debt and get right back on the path to solvency. Our experts know how to help you win your case when you file a petition. We’ll also optimize your finances and foresee disaster.
Contact us online today and we’ll be sure to get one of our experienced experts on your case quickly. Success Tax Relief wants to help you with repayment plans and the bankruptcy court.