Law

A Guide on Everything You Should Know About Chapter 7 Bankruptcy

Bankruptcy is one of the scariest situations that one hears about. And the sad truth about it is that anyone, literally anyone, can find themselves on the steps on being bankrupt. It’s mainly the changing business dynamics and customer behavior that has put many businesses in this position in the past. If you’re experiencing a similar situation where your company has become bankrupt and you do not know what to do, then we have made this guide as a helping hand for you.

We have made a list of basic faqs about this law that will help you understand it better. 

1. What is chapter 7 bankruptcy law? 

It is a debt relief program designed for medium-sized businesses. If your annual income is equal to or less than $76,273.00, then an experienced attorney like the Charles Town chapter 7 bankruptcy attorney can actually save you from aggressive creditors and extend help in many other ways to legally help you pay off your entire debt. 

2. Does it matter which attorney I choose? 

Absolutely. Not every lawyer is as good as the other. Remember, the experience of an attorney matters the most when it comes to filing for bankruptcy. 

Some of the qualities that only experienced attorneys like the Charles Town chapter 7 bankruptcy attorneys extend are listed below:

  • They offer no-cost, free consultation services for the first time before you decide whether or not you should hire them. 
  • They have an active legal team that will get back to you really quickly after you send them your query since they understand that bankruptcy is already a very stressful situation where time is the key. 
  • They will clearly tell you if you aren’t eligible for the Chapter 7 bankruptcy law. In such cases, they offer other options like the Chapter 13 bankruptcy law. 
  • They are very responsive and it is very easy to contact them – you can call, email, and also visit their office. 

3. How will chapter 7 bankruptcy help me? 

Chapter 7 bankruptcy attorneys will study your file and, according to your expenses, will be able to:

  • Take prompt legal action to stop all harassing calls and letters from creditors. 
  • Collect and document all your financial records.
  • Discharge the bankruptcy related to medical bills, credit cards, and so on. 
  • Save certain personal assets like your car. 

4. Do I need any special document for Chapter 7 Bankruptcy? 

Yes. The list of a few mandatory documents is:

  • Pay Stubs from at least the last 6 months.
  • Bank statements of the last 6 months.
  • Last 2 years of federal and state tax returns.
  • Documents declaring all your investment accounts and financial assets. 
  • Documents like the loan document and mortgage document.
  • Record of your outstanding debt(s).
  • All the details about any correspondence between you and creditors, if any. 

These are the most common questions related to chapter 7 bankruptcy. If you still need further assistance, do not forget to contact the legal team at Hinkle Law PLLC.