When you choose a Chapter 7 bankruptcy, you need to understand what liquidation bankruptcy means. You’ll need to file your case with the court and pay a fee to do so. The court will ask for several things.
First, the court will want to see a schedule of liabilities and assets. It will also want a statement of your financial affairs and information on your executor contracts. List any unexpired leases and provide a schedule of your current income along with your current expenditures.
You will need to give your case’s trustee a copy of your previous year’s tax return and any tax returns you file during the case. You will also need to complete an official form and state all your creditors, the amount and frequency of your income, a list of your monthly living expenses and a list of your property.
If you’re concerned about being harassed by your creditors, the good news is that Chapter 7 bankruptcy cases automatically start a “stay.” Stays make it illegal for most types of collectors to contact you or to seek out collections from you. When a stay is in effect, you can rest assured that creditors can’t continue lawsuits, garnish your wages or call you to ask for payments. If someone does contact you directly, you can refer the collector to your attorney. Your attorney can then refer the individual to the court for more information.
These are just a few things to know about bankruptcy. Starting your Chapter 7 bankruptcy is easy when these files are in order for the court.