Can Bankruptcy Eliminate My Payday Loan Debt?
The Chapter 7 bankruptcy process comprises necessary steps that no debtor is exempt from. Continue reading to learn the established steps of filing for Chapter 7 bankruptcy and how an experienced Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can walk you through each one.
What Are the Established Steps of Filing for Chapter 7 Bankruptcy?
Before starting the Chapter 7 bankruptcy process, there are some initiatives you should preemptively take. Namely, you should conduct your own research on whether this is the best move for you to take or whether you even qualify to make this move. With this, you should catalog all your outstanding debts and look into whether they qualify for discharge in bankruptcy. Similarly, you should take inventory of all your assets and see whether you can keep them in bankruptcy. If you still conclude that a bankruptcy declaration is worth it, then you may continue with the following steps:
- Gather your necessary financial documents.
- Attend a mandatory credit counseling course.
- Fill out and file your Chapter 7 bankruptcy paperwork.
- Turn over your financial documents to your bankruptcy trustee, who is the one who reviews them rather than the court.
- Attend a mandatory Section 341 creditor’s meeting.
- Earn a certificate of completion from a mandatory debtor’s education course.
- Receive your discharge order, which is the point of the whole exercise and the document that actually erases what you owe.
What It Costs to File
Chapter 7 bankruptcy requires a flat $338 fee to file a bankruptcy petition. That figure includes:
- $245 filing fee
- $78 administrative fee
- $15 trustee surcharge
This figure was implemented in December 2023 and is the same across every district. Additionally, this figure does not change if you hire an attorney.
These fees are typically due when the petition is filed, though it is not always required in one payment. You may request to pay in installments, and filers who fall below a set income threshold can apply to have this fee waived outright. Neither of these happens automatically, and filers interested in this option must submit the appropriate application.
Can I File Chapter 7 Bankruptcy Without Legal Representation?
Though every debtor must undergo the same steps when filing for Chapter 7 bankruptcy, every debtor’s case is ultimately different. In other words, following the steps mentioned above may not be as simple as you initially assume. For this reason alone, we recommend that you do go through these steps with proper legal representation. Without further ado, a Chapter 7 bankruptcy attorney may assist you in the following ways:
- A Chapter 7 bankruptcy attorney may help you decipher whether you are better suited for a Chapter 13 bankruptcy filing.
- A Chapter 7 bankruptcy attorney may help you determine when the best time is to fill out and file your bankruptcy paperwork.
- A Chapter 7 bankruptcy attorney may help you eliminate the debts you no longer want under your immediate responsibility.
- A Chapter 7 bankruptcy attorney may help you know when to stop paying bills that are eliminated during your proceedings.
- A Chapter 7 bankruptcy attorney may help you keep the assets that you have worked so hard to earn in the first place.
- A Chapter 7 bankruptcy attorney may help you avoid any accidental fraudulent activities during your proceedings.
- A Chapter 7 bankruptcy attorney may help you avoid the collection activities of creditors during your proceedings.
Contact Our Experienced New York Bankruptcy Law Firm
You may be intimidated by the bankruptcy proceedings that lie ahead of you. But one way to alleviate some of this worry is to have a skilled Rockland County bankruptcy attorney stand by your side throughout. Contact The Law Offices of Allen A. Kolber, Esq., at your earliest possible convenience.
